SBI Cards' Dismal Debut On Dalal Street As Coronavirus, Yes Bank Spook Market

The Weak Sentiments In The Market Had A Direct Impact On The Listing Of The SBI Cards IPO.

Agencies | Updated on: 16 Mar 2020, 01:15:04 PM

Shares of SBI Cards and Payment Services made a weak debut at the bourses on Monday, plunging nearly 13 per cent, against its issue price of Rs 755. (Photo Credit: File Photo)

New Delhi:

SBI Cards - one of the most-awaited IPOs of 2020- made an underwhelming debut on Dalal Street on Monday. With coronavirus impacting the markets worldwide, the Sensex remained in bear hug as it opened in red on Monday. Plunging around 1,600 points in morning trade, the markets have not been able to pare the losses. At time of publishing this story, the Sensex was trading at 32,234.43 shedding around 1,900 points. The weak sentiments in the market had a direct impact on the listing of the SBI Cards IPO. The SBI Cards listed 12 per cent lower against its issue price. Shares of SBI Cards and Payment Services made a weak debut at the bourses on Monday, plunging nearly 13 per cent, against its issue price of Rs 755.The scrip listed at Rs 658, dropping 12.84 per cent from the issue price on the BSE.

On the NSE, it slumped 12.45 per cent after opening to Rs 661. The company's market valuation stood at Rs 69,811.44 crore on the BSE.

In traded volume terms, 17.65 lakh shares were traded on the BSE and 2.6 crore shares on the NSE in early trade. The initial public offer of SBI Cards and Payment Services 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.

Morning Mayhem

Equity benchmark Sensex plummeted over 1,600 points and the broader Nifty gave up the 524 level in opening session on Monday as worsening rout in world markets continue over coronavirus fear. The rupee too plunged 42 paise to 74.17 against US dollar in morning session. The number of novel coronavirus cases in India rose to 110, with 12 fresh cases reported in Maharashtra on Sunday. Coronavirus has infected more than 150,000 people globally and killed over 5,500.

The broader Nifty50 index hovered around 9,500 levels. All the Nifty sectoral indices were trading in the red with Nifty Bank, Nifty Private Bank, and Nifty PSU Bank indexes taking the deepest cuts.

What Happened On Friday?

In the early session on Friday, the BSE sensex plummeted 3,000 points hitting its 10 percent lower circuit limit at 29,687.52. Nifty also hit its lower circuit at 8,624.05, down by 10 percent or 966.10 points. The trading was halted for 45 minutes following the market bloodbath. On the global front, the Asian markets also nosedived as panic around coronavirus further dented the investor sentiment. Wall Street also tanked on Thursday after US president announced a travel ban for all European countries except Britain in the wake of coronavirus outbreak.