SBI Cards and Payment Services listing looked like it was largely on expected lines given the market turmoil which wiped out around Rs 36 lakh crore of investor wealth in 2 months duration due to novel coronavirus.
The stock opening hit a 13% low at Rs 658 on the BSE against an issue price of Rs 755.
It had somehow managed to hit its issue price intraday in morning trade, but could not hold the same for much longer. Considering the level of fluctuation the market conditions are indicating towards, most experts advise selling of shares of SBI Card now and holding cash to buy the same later once the coronavirus scare gets carefully mitigated.
SBI Card had initially launched the IPO for subscription during March 2-5 and garnered Rs 10,340 crore from investors.
Hardayal Prasad, MD & CEO at SBI Cards & Payment Services remains confident about credit card industry growth going ahead.
Parent State Bank of India also reduced its stake in SBI Card to around 70 per cent and global investor.
As far as the buyer on a listing day is concerned, Manali Bhatia said investor may wait for the price to get stable & can be bought to the levels of Rs 650-700 per share on a listing day. CA Rover, an affiliate of Carlyle Group, to around 16 per cent post issue.