SBI Cards IPO Opens Today: Here's How to Boost Your Chances of Share Allotment

SBI Cards IPO | The much-awaited SBI Cards and Payment Services Ltd’s initial public offering (IPO) opens today for subscription. The shares are being offered in a price range of Rs 750-755 a piece, while the lot size has been fixed at 19 equity shares. Going by the responses received by recent successful IPOs like IRCTC and Ujjivan Small Finance Bank, along with the positive reviews given by brokerages to the SBI Cards IPO, chances are high that the issue will be oversubscribed multiple times. In such a scenario, here’s how subscribers can boost their chances of SBI Cards share allotment:

— If an IPO is oversubscribed in the retail category, the shares are allotted in a way that ensures that every retail bidder gets at least one minimum lot. The remaining shares, if any, are then allotted proportionately. However, if the oversubscription is so huge that minimum allotment to every retail subscriber is not possible, then allotment happens on the basis of lottery.

— In such cases, instead of subscribing from one account, split your investment and subscribe from multiple accounts (those belonging to family members, etc). That improves chances of allotment in case of lottery. Probability of allotment is twice if one goes for two applications of one lot each than making one application of two lots.

— Existing shareholders of parent company, in this case SBI, also have higher chances of allotment as there are shares reserved for this category. Having at least one share SBI as of 20 February will make the investor eligible to apply in the shareholder category of SBI Cards IPO.

In addition, the same shareholder can also apply in the retail category as well, thereby increasing his/her chances of allotment further.

— There is a special category for employees of SBI Cards. So those falling in that category can make their bids accordingly. An employee discount of Rs 75 per equity share will also be offered to eligible employees in accordance with the terms and conditions stipulated in the red herring prospectus dated 18 February.