SBI Cards and Payment Services Ltd shares were listed at Rs 658 per share on BSE and Rs 661 on NSE as bears quarantine the listing day expectations from SBI cards . Down by Rs 97 and Rs 94 from the issue price of Rs 755 on BSE and NSE respectively. SBI Cards share was expected to open with a bumper listing with brokerages going all-out recommending to subscribe to the IPO in the first week of March. However, expectations turned negative for SBI Cards and Payment Services last week when the stock markets witnessed a global sell-off on fear of Coronavirus spreading across the globe. The expectations also turned awry as SBI Cards promoter, State Bank of India announced it would bail out struggling private-sector lender Yes Bank investing more than Rs 6,000 crore in the bank.
SBI Cards initial public offer (IPO) was opened for subscription on March 2 and continued to accept bids till March 5. The issue was oversubscribed 26 times with Qualified Institutional Buyers (QIB) oversubscribing their portion 57 times and Non-Institutional Investors (NII) oversubscribing by 45 times. The fifth-largest IPO ever to enter the Indian market received bids worth Rs 2 lakh crore.
After the turbulent week for the share markets, the expectations for SBI Cards had taken a turn for the worst. Analysts were expecting a muted listing as against a bumper premium on the listing day as expected during the IPO bidding process. S&P BSE Sensex tanked 15 per cent since the last day of the bidding process and NSE Nifty-50 treaded the same path. The volatility in the market continued for the entire week as Sensex recorded its worst single day and weekly fall during the week.
The volatility continued on Monday as S&P BSE Sensex tanked 1500 points on opening while the broader NSE Nifty-50 opened below 10,000 mark dropping 500 points. The fear of a recession looming just around the corner aided by Coronavirus has share market players rattled with investors selling their holdings to book profits.