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Who decides the price band of an IPO?

For the announcement of the price band and the bid offer period, working day means all days, excluding all Saturdays, Sundays and public holidays on which commercial banks in Mumbai are open for business. The price band may move up or down to the extent of 20 per cent of the floor price and the cap price is revised accordingly. The  price  band and the minimum bid lot of an initial public  offer  ( IPO ) is decided by the promoters or selling shareholders of a company in consultation with the book running lead managers (BRLMs). It is advertised in widely circulated English and Hindi national newspapers, at least two working days prior to the offer opening date, with the relevant financial ratios calculated at the floor price and cap price and are made available to the stock exchanges for uploading on their websites. For the announcement of the price band and the bid offer period, working day means all days, excluding all Saturdays, Sundays and public holidays on whic...
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SBI Cards IPO: Share allotment soon. How to check your status

SBI Cards IPO was subscribed over 22 times despite difficult market conditions
  • SBI Cards’ ₹10,000 crore IPO is the first by a credit card issuer in India
  • SBI Cards IPO: Retail individual investors segment was subscribed 2.5 times
All eyes are on the allocation of SBI Cards shares after the IPO closed on March 5th. Despite a plunging market, SBI Cards IPO was subscribed over 22 times in one of the largest share sale in recent times. If you had invested in the IPO, then you can check the status of your allotment on the website of Link Intime India, the registrar of the IPO. The share allocation is likely to be decided on Wednesday. And the listing on BSE and NSE is likely to happen on March 16th.

SBI Cards, the credit card arm of the SBI, the country's top public lender, drew bids for 225 crore shares, compared about 10 crore shares on offer, stock exchange data showed. Non-institutional investors category was subscribed 45 times and retail individual investors 2.5 times.

SBI Cards’ ₹10,000 crore IPO is the first by a credit card issuer in India and the fifth largest by any company in India. The issue, which opened on March 2, came at a time when global financial markets were roiled by fears of the economic impact of the coronavirus.

Analysts said they had anticipated a higher subscription rate but acknowledged that the spread of the coronavirus had major knock-on effects on markets and the wider economy.

But “looking at current economic conditions globally, the IPO has still fared better (than expected)," an economist at Mumbai-based Anand Rathi Securities, Sujan Hajra, told AFP.

India’s biggest bank, SBI, which held 74% of SBI Cards, sold its 4% stake. Carlyle Group, which held 26%, was selling its 10% stake.

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 lead managers for the IPO. (With Agency Inputs)

Comments

  1. SahasranshuMarch 17, 2020 at 2:13 PM

    Good job..
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Who decides the price band of an IPO?

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