SBI Cards allots shares worth nearly Rs 2,800 crore to anchor investors

The SBI Cards IPO will be a test for investor appetite, which has been battered by the coronavirus outbreak.

SBI Cards and Payment Services (SBI Cards), a subsidiary of State Bank of India (SBI), has allotted nearly Rs 2,800 crore worth of shares to anchor investors ahead of its initial share sale, starting on Monday.

Anchor investors are institutional investors who commit to subscribe to the shares in an initial public offering (IPO) ahead of its opening. Other investors look at the demand and the quality of the anchor book to decide whether to apply for the IPO. 

Total 36.7 million shares have been allotted to 75 anchor investors at Rs 755 apiece, the top-end of the IPO price