SBI Cards IPO can prove to be multibagger like IRCTC if you see gray market
Unlisted shares are traded in the gray market where SBI Cards shares are at a 40% premium.
Market regulator SEBI has cleared the IPO of SBI Cards. Its IPO is scheduled to come in March. If you talk about gray market, then the shares of SBI Cards are at a 40% premium to the proposed IPO band.
According to the Economic Times, brokerage firm Edelweiss Securities has stated in a report that the issue of SBI Cards will open between March 2 and 5.
Abhishek Chaturvedi of Ultimate Wealthowl, which deals in unlisted shares, said, “We are expecting the price band of SBI cards to be in the range of Rs 690-710”.
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Most people associated with the market expect the IPOs of SBI cards to be oversubscribed. Its unlisted share in the gray market is at a premium, which can be gauged from its excellent performance. “Once the real price comes, the premium in the gray market can increase. It can go up by more than 50 per cent. However, if the price band is around Rs 1000, the premium will remain at the current 40 per cent,” he said.
10% of the issue has been reserved for the existing shareholders of SBI. Dinesh Gupta of Unlisted Zone said, “If you already have SBI shares, then you can get the benefit. There are more chances of getting shares in this quota.”
SBI shares have been rising for the last few sessions. SBI shares had fallen after the December quarter results. SBI shares have risen 22 per cent in the last one year. However, it has fallen 4% so far this year.
Gupta said, “The company’s growth has been strong for the last 4-5 years. It is a good claim for the long term.”
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SBI Cards is the second largest company in the Indian credit card market. The company was started in 1998. It is a subsidiary of the country’s largest bank SBI. Abhishek Chaturvedi said, “This is a multibagger stock. If you get this share, always keep it with you. It will be profitable like IRCTC.”
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