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SBI Cards Upon Listing Is Seen As A Multi-bagger Stock

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Similar to IRCTC stock, SBI Cards one's in your kitty is seen to be a multi-bagger based on its performance in the grey market. Just ahead of the issue, which is due to be released in the first week of March, in the market the stock trades at 40% premium to the projected IPO price band.

SBI Cards Upon Listing Is Seen As A Multi-bagger Stock
 

"We expect a price band of Rs 690-710 and the stock is trading at a premium of Rs 270-280," says Abhishek Chaturvedi of Ulitmate Wealthowl, a firm that deals in unlisted shares.

"Once the actual price band is out, the premium is likely to rise. It may cross 50 per cent, if the price band is on the expected lines. However, if the price band comes close to Rs 1,000, the premium will remain in the current range," he added.

The issue is said to see huge oversubscription and in the run up to the issue, the premium in the grey market will further trend higher.

It is to be noted that 10% of the shares shall be reserved for SBI shareholders.

"It will be a multibagger stock. If you get it, keep it in your portfolio forever. It is a must buy. The IPO will unlock its true value, which was seen in the case IRCTC, which was highly undervalued," Chaturvedi said.

As per the DRHP, SBI Cards will offer up .. SBI Cards will offer up to 130,526,798 equity shares through the offer for sale route. This will include sale of up to 37,293,371 shares by SBI and up to 93,233,427 shares by Carlyle Group. In addition, the company will issue fresh equity shares worth Rs 500 crore.

GoodReturns.in

Story first published: Thursday, February 20, 2020, 12:02 [IST]
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