How to Buy SBI Card IPO: A Comprehensive Guide

Investing in the Initial Public Offering (IPO) of SBI Card presents a great opportunity for investors looking to secure shares in a financially stable company. However, to participate in the SBI Card IPO, there are a few prerequisites and steps you need to follow. In this article, we will guide you through the process of buying SBI Card shares through an IPO and when the shares will be listed on the National Securities Exchange (NSE) and Bombay Stock Exchange (BSE).

Requirement for SBI Card IPO

The primary requirement to participate in the SBI Card IPO is a Demat account. If you do not already have a Demat account, you can open one through various providers. Opening a Demat account is crucial as it allows you to hold and trade securities in electronic form.

Here are the general steps you need to follow:

Approach Your Broker: Firstly, you should approach your stockbroker and request an application form. The stockbroker will guide you through the process and provide you with all necessary details. Online Application: If you prefer to apply online, you can open a Demat account and apply for the IPO through the profile section on the online platform. Make sure to pay the required fees via net banking or Unified Payment Interface (UPI).

Timeline for SBI Card IPO

The IPO timeline for SBI Card is as follows:

IPO Application: The issue will be open to the public from 02/March/2020 to 05/March/2020. The last day is reserved for High-Net-Worth Individuals (HNIs) and retail investors. Bid Finalisation: The finalisation of bids will take place on 11/March/2020. Refunds: Refunds will be available on 12/March/2020. Share Credit: The credit of shares will be provided on 13/March/2020. Listing: The shares are expected to be listed on 16/March/2020 on the NSE and BSE.

Alternative Ways to Purchase SBI Card Shares

There are two main ways to purchase SBI Card shares:

Primary Market Route (IPO)

1. Apply for IPO: If you choose to apply through the IPO route, you will need to have a Demat account. Opening a new Demat account from scratch typically takes about a week.

2. Apply via ASBA: Some investors prefer to apply via the Account Holders Securities Anyway Allocation (ASBA) route, which allows you to use existing funds from a Demat account for the IPO application.

Secondary Market Route (Exchanged-Traded Shares)

1. Open a Trading Account: If you wish to buy the shares after the IPO, you will need to open a trading account.

2. Open a Demat Account: A Demat account is also required to hold securities in an electronic format.

These steps will help you secure a place in the IPO and ensure that you can purchase SBI Card shares on the open market once the Listing takes place.

Key Points to Note:

Employee Discount: Employees get a discount of Rs.15 per share, making it a more attractive option for employees holding SBI shares. Category-wise Breakup: The IPO is categorized into various categories like Anchor, Qualified Institutional Buyers (QIB), Non-Institutional Investors (NII), Retail Investors (RII), etc. Total Issue Size: The total issue size of the IPO stands at 137,149,315 shares, with a face value of Rs.10 per share and a price band of Rs.750 to Rs.755 per share.

Following these steps will help you maximize your chances of securing a spot in the SBI Card IPO and benefit from its listing on the NSE and BSE in the near future.