How do you expect the demand for the SBI Cards IPO when it opens on March 02, 2020?

You must be aware that the IPO of SBI Cards and Payment Services will open on March 02 and close on March 05. SBI Cards will raise Rs.10,355 crore through the IPO, of which Rs.500 will by way of fresh issue and Rs.9854 crore by way of offer for sale by SBI and Carlyle group.

The company has set the price band for the share sale at Rs.750-755. SBI Cards is 74% owned by SBI while Carlyle Group owns the remaining 26%. It may be recollected that this 26% stake was originally held by GE Capital which was later bought out by Carlyle Group. SBI will have a stake of 69.51% post eh IPO, lower from the 74% stake in the company.

Most analysts have spoken loftily about the SBI Cards IPO. In fact, the book running lead managers (BRLM) are expecting a record demand from retail, institutions and from HNIs.

In fact, one can also see aggressive appetite for funded applications with the help of loans; which is the most common method for HNI investors.