SBI Cards, the country’s second-largest credit card company, will make its stock market debut on Monday.
In case the YES Bank
clients fail to make payments within two days, the offer for sale component of the IPO
will be reduced, said a banker with knowledge of the development.
This means that both State Bank of India and private equity major Carlyle will end up divesting slightly less than what was originally intended. The SBI Cards IPO
comprised of Rs 500 crore of fresh equity issuance and around Rs 9,800 crore worth of secondary share sale by SBI and Carlyle, who were divesting 4 per cent and 10 per cent of their holdings, respectively.
Market players are not ruling out the possibility of investors' payments not coming through.
may not have sufficient funds in other bank accounts to pay, while others might deliberately not pay, given the volatility in the market,” said an official with a brokerage.
SBI Cards' IPO closed on Thursday. Since then, the market has corrected more than 7 per cent.
Market players said the grey market premium for SBI Cards has crashed from 50 per cent to below 5 per cent, given the correction in the market.