SBI Cards make weak debut at bourses; plunges over 10% as coronavirus fears continue to hurt investor sentiment
The drop in SBI Card's scrip was in-line with a weak broader market, where the BSE benchmark plummeted over 2,700 points.
New Delhi: Shares of SBI Cards and Payment Services made a weak debut at the bourses on Monday plunging over 10 percent against its issue price of Rs 755 as coronavirus fears continued to hurt investor sentiment.
The scrip listed at Rs 658, dropped 12.84 percent from its issue price on the BSE. During the day, it touched high of Rs 755 and a low of Rs 658. Later, it plunged 9.50 percent to close at Rs 683.20.
On the NSE, the scrip tanked 10.19 percent to close at Rs 678. The company's market valuation stood at Rs 64,149.53 crore at close of trade on the BSE.
The drop in the company's scrip was in-line with a weak broader market, where the BSE benchmark plummeted over 2,700 points.
On traded volume terms, 41.67 lakh shares were traded on the BSE and 6.08 crore shares on the NSE during the trade.
The initial public offer of SBI Cards and Payment Services, part of the country's largest public sector lender SBI, was one of the largest share sale in recent times, both in terms of size and oversubscription.
It was subscribed over 22 times earlier this month. Price range for the IPO was fixed at Rs 750-755 per share. Kotak Mahindra Capital Company, Axis Capital, DSP Merrill Lynch, HSBC Securities and Capital Markets (India), Nomura Financial Advisory and Securities (India) and SBI Capital Markets were the managers to the offer.
India VIX settled at 21.84 levels. BSE Smallcap and Midcap indices fell between 0.5 and 0.8 percent. Auto was the biggest drag. Banking was the top gaining sector
Midcap and Smallcap indices also ended in losses. Oil & gas were the top gainers, while IT was the biggest drag
Weak global trends and persistent foreign fund outflows coupled with rising crude prices led to domestic markets snapping their three-day positive streak. However, they bounced back on the back of gains in oil & gas, metal, and auto sectors.