Shares of SBI Card and Payment Services Limited debuted on the bourses and there was a listing ceremony held at the BSE Convention centre to commemorate the same. The listing ceremony was very widely attended by the entire top brass of State Bank of India, which is the parent of the company which was being listed.
It can only be termed as poetic justice that a company in which the merchant bakers did all they could to debar the small shareholders from their rightful allocation of shares in the shareholder category, ended up with big losses instead of handsome profits. The only category of people who made money in the SBI Card issue were the financers who lent to the leveraged HNI’s. The interest rates which were 8-9% in the earlier issue were increased significantly to 14-18%.
SBI Card had tapped the capital markets with its fresh issue of Rs 500 crs and an offer for sale of 13,05,26,798 equity shares in a price band of Rs 750-755. The company had earlier allotted 3,66,69,589 equity shares to 74 anchor investors which included 12 mutual funds who have been allotted shares in 48 schemes.
The highest allocation was made to HDFC Mutual Fund who was allotted 20.53 lac shares. The top even anchor investors were allotted about 40% of the anchor book. This is an extremely fair and well distributed anchor allocation and is not skewed in any manner as has been seen in many other issues.
The issue opened on Monday the 2 nd of March and closed on Wednesday the 4th of March for QIB investors. It closed on Thursday the 5 th of March for all other investors which include HNI’s, Retail, Employee and Shareholders. The issue was subscribed 26.49 times overall, with QIB portion subscribed 56.66 times, HNI portion 45.24 times, Retail portion 2.50 times, Employee portion 4.74 times and Shareholder category 25.36 times. In all the issue received 37.35 lac applications.
The discovered price on BSE was Rs 658 while it was Rs 661 on NSE. The low of the day was Rs 658 on BSE and Rs 656 on NSE which were made immediately on open. The high of the day was the issue price of Rs 755 on both exchanges as saving grace for the dignitaries and the company at the listing ceremony. The closing price was Rs 683.20 on BSE, a loss of Rs 71.80 or 9.51%, while it was Rs 681.40, a loss of Rs 73.60 or 9.75% on the NSE.
SBI Card limited Delivery Day One
| Exchange | Open | High | Low | Close | Net Change | % Gain/loss | Wt. Avg | Volume | Delivery | Del %age |
| BSE | 658.00 | 755.00 | 658.00 | 683.20 | -71.80 | -9.51 | 711.58 | 4167374 | 1554235 | 37.30 |
| NSE | 661.00 | 755.00 | 656.00 | 681.40 | -73.60 | -9.75 | 709.41 | 60893377 | 35341400 | 58.04 |
| Total | 65060751 | 36895635 | 56.71 |
The weighted average of the day was Rs 711.58 on BSE while it was Rs 709.41 on NSE, indicating that the share was under pressure as the closing price is well below the weighted average. The traded volume was 650.60 lac shares and the delivery volume were 368.95 lac shares or 56.71%. As a percentage of the issue, the traded volume was 50% of the IPO size of 13.05 cr shares. Delivery volume was 28.25% of the IPO size and 39.28% of the non-anchor portion.
It would be interesting to note that the cost of funding for the leveraged HNI in HNI category was about Rs 90 while it was Rs 60 in the shareholder category. While allotment in the shareholder category was very badly skewed with 200 out of 4.95 lac investors being allotted 81% of the shares.
Further, in the lowest category of one lot where there were 2.59 lac applications just about 11,000 shareholders were lucky to get allotment. Looking at the performance of the share on the bourses, one wonders who was lucky and who was unlucky.
