The qualified institutional buyers' portion, which was closed on March 4, was subscribed 57.18 times.
The Rs 10,355-crore public offer of the country's second largest credit card issuer SBI Cards and Payment Services has been oversubscribed 15.95 times so far on the final day of bidding, March 5.
The offer has received bids for more than 159.93 crore equity shares against the IPO size of over 10 crore shares (excluding anchor book over 3.66 crore shares), the exchanges data showed.
The portion set aside for non-institutional investors is subscribed 3.83 times, and that of retail is subscribed 1.95 times.
The reserved portion of employees saw a 3.3 times subscription, while that of State Bank of India's shareholders portion is oversubscribed 4.12 times.
SBI Card will offer shares to its employees at a discount of Rs 75 over final IPO price that is expected to be decided in the next couple of days.
The qualified institutional buyers' portion, which closed on March 4, was subscribed 57.18 times. Meanwhile, the company garnered Rs 2,768.55 crore through anchor book, which closed on February 28.
Also read | SBI Cards IPO: 10 things to know about the keenly-eyed issue
The largest public issue since October 2017, which has a price band of Rs 750-755 per share, consists a fresh issue of Rs 500 crore and offer for sale of more than 13 crore shares by parent firm State Bank of India and CA Rover Holdings, an affiliate of global private equity firm Carlyle Group. SBI shareholding will reduced to 69.51 percent after the issue.
SBI Card IPO subscription begins: Should you subscribe?
Prabhudas Lilladher has initiated coverage on SBI Cards and Payment Services with a buy recommendation and target price of Rs 1,191.
The brokerage believes that SBI Card is a formidable play on rising discretionary spends and non cash economy given a) broad reach and parentage of SBI b) under-utilized captive banca potential c) leadership in co-branded cards and d) 40 percent contribution of premium cards.
"We estimate 23 percent CAGR in total cards-in-force which will enable 27 percent CAGR in in loan receivables and revenues. Strong risk management and data analytics capabilities will enable a steady 14 percent NIMs, 2.5-2.6 percent gross non-performing assets and ROA/ROE of 6 percent and 28 percent despite credit costs of 0.4 percent given high risk unsecured lending model," said Prabhudas Lilladher.
Disclaimer: The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.Time to show-off your poker skills and win Rs.25 lakhs with no investment. Register Now!
