The SBI Cards IPO will be open for subscription from March 2 to 5. Now the offer period for the initial public offering (IPO) of SBI Cards & Payment Services (SBI Card) will span for a timeframe of four trading days.
Normally an IPO subscription generally takes a minimum period of three and a maximum of 10 working days.The Rs 10,352 crore SBI Card IPO ((including a fresh issue of Rs 500 crore) will be India’s fifth-biggest issuances after Coal India (Rs 15,100 crore), Reliance Power (Rs 11,563 crore), GIC RE (Rs 11,370 crore), ONGC (Rs 10,543 crore).
The Coal India issuance will last for four days. The biggest issue was sold from October 18 to 20, 2010, for qualified institutional bidders, and from October 18 to 21 for retail and HNI investors.
SBI is one of its parents and a 35 per cent of its issuance reserved for retail investors, the SBI Card issue is expected to spike huge demand.
It led bankers to seek an extra day to ensure that retail investors get to file their applications on time and no extension be required.
Market Representative of SBI Cards issue a statement, “To ensure smooth conduct of the application process and accommodate retail investors from remote locations, we, on behalf of the promoter and company, requested the market regulator to give one more day so that exchanges can accept all applications up to 5 pm on the fourth day, exchange personnel need not work late on closing day and it becomes a win-win situation for everyone.”
In the case of SBI Card IPO, the portion reserved for retail investors is worth around Rs 3,200 crore.
In the SBI Card IPO, about 1.31 crore shares have been reserved for investors, who were State Bank of India shareholders as on February 20. They can apply in both retail and shareholders categories if the application amount falls within the limit of Rs 2 lakh.