The issue has received bids for more than 5.2 crore equity shares against issue size of over 10 crore shares (excluding anchor book's portion), according to the data available on the exchanges.
The initial public offering (IPO) of the second-largest credit card company, SBI Cards and Payment Services, has been subscribed more than 87 percent on the second day of bidding.
The issue has received bids for 8,75,37,636 equity shares against issue size of 10,02,79,411 shares (excluding anchor book's portion), according to the data available on the exchanges.
The company aims to raise Rs 10,355 crore through this IPO. It has already raised Rs 2,769 crore from 74 anchor investors, including 12 mutual funds.
The IPO comprises a fresh equity issue worth Rs 500 crore and a total dilution of around 14 percent is expected to be done through SBI Cards IPO via an Offer For Sale (OFS) route.
Brokerages have recommended subscribing to this IPO as SBI Cards is the second-largest credit card company in the country.
“Given its dominant position in the credit card market and strong parentage, SBI Cards is well placed to benefit from the rising trend of digital payments and e-commerce,” said Motilal Oswal.
The company has strong support from its parent, State Bank of India.
“Strong growth, stable asset quality, and superior return ratios provide comfort and justify the premium valuation. Further, being the first in the segment to get listed, it could generate high investor interest,” Motilal Oswal added.
Thus, the brokerage recommends subscribing to the IPO.
First Published: IST