The basis for share allotment is likely to be finalised either on Wednesday or Thursday.
The recent steep fall in the secondary market has already tampered expectations of strong listing gains for the stock.
The unofficial market for unlisted shares is already reflecting this sentiment with the premium on the stock dropping to just 10-13 per cent over the upper limit of the IPO price band at Rs 755. For HNIs, who borrowed money from NBFCs at high interest rates to apply under the NII quota, this could mean a big hit, as the funding itself would have cost them Rs 200-250 per share, said analysts.
The stock is expected to get listed early next week.
Those who bade for the issue can check the subscription status on the online portal of Link Intime India, the registrar to the IPO. The registrar to an issue is a Sebi-registered entity, qualified to act as such, and which electronically processes all applications and carries out the allotment process as per the prospectus.
The registrar is responsible for complying with the time deadlines for updating the electronic credit of shares to successful applicants, dispatch and uploading of refunds and attending to all investor-related queries after the issue is completed.
The SBI Card IPO, which was sold between March 2 and 5, was subscribed 26.54 times. The quota for HNIs was subscribed 45.23 times and for that for retail investors 2.50 times.
SBI Card is the second biggest player in the credit card market. The biggest strength of the company is SBI’s parentage, whose brand is highly trusted.
The credit card-to-debit card ratio for SBI Card stands at 3.7 per cent compared with 45 per cent for HDFC Bank, 28 per cent for Axis Bank and 18 per cent for ICICI Bank, which suggests scope for SBI Card mining SBI Bank customers.
Analysts noted that SBI Card has not seen its RoE dip below 25 per cent in last 6-7 years and has logged an average of 30 per cent ROE during that period.
