Uncertainties related to coronavirus caused the stock market to fall, impacting the listing of the much-awaited SBI Cards and the company's shares were listed far below the issue price. According to a media reporter's report, the company's shares on BSE opened at Rs 658, ie 12.84% below the issue price. At the same time, the company's shares on the NSE are down 12.45% i.e. open at Rs 661. Along with this, the Rs 10,000 crore IPO of SBI Cards and Payment Services Ltd got more than 22 times subscription. SBI Cards is the first credit card company to be listed on the stock market. The listing of the company's shares has happened at a time when there is an atmosphere of turmoil due to coronavirus worldwide.
There was tremendous enthusiasm in investors
Investors had shown tremendous interest in this IPO, given the track record of SBI Cards' parent company SBI and the strong presence of SBI Cards in the credit card market. At the moment, with the closure of the IPO for subscription, circumstances have turned such that investors are expecting a significant premium on the company's stock. Along with this, on the one hand, due to Coronavirus, there was an unprecedented decline in the stock markets worldwide, while the Yes Bank crisis further aggravated the crisis in the domestic stock markets. On Monday, after the listing on Monday, the price of one share of the company rose sharply and went up to Rs 753. At the same time, due to heavy selling in the meantime, the price of the shares of the company is falling once again and the price of one share of the company has come to around Rs 728 at 10:30 am.
No need to panic according to analysts
According to Rahul Agarwal, director of stockbroking company 'Wealth Discovery', there is an atmosphere of turbulence in the stock market but investors need not panic. With this, Rahul investors can hold shares of SBI Cards as the company's record is very clean, so investors should show patience.