How to invest in SBI Cards IPO to get the maximum allotment in retail and shareholders category?

For retail investor and eligible shareholder, SBI Cards IPO can be applied in 3 ways –

• Shareholders Quota (<₹2 lakh) and Retail Quota (<₹2 lakh) or
• Shareholders Quota (<₹2 lakh) and NII Quota (>₹2 lakh) or
• Only Shareholders Quota (>₹2 lakh). This will be considered as multiple bid so cannot bid in Net Offer.

To get maximum allotment, one can try to get a minimum of 1 share of SBI in his demat account before the cutoff date to apply in the shareholder category. Shareholder category allotment is going to be done via a proportionate basis. So if you are a shareholder in SBI, you are going to get shares for sure. The retail category is going to be decided by a lottery mechanism in case oversubscribe.

Allotment in Shareholders category is going to be as follows:

• If the category is under-subscribed at or above the Offer Price, full allocation will be made to the SBI Shareholders to the extent of their demand.
• If the category is over-subscribed (which will be the case seeing the current scenario), the allocation shall be made on a proportionate basis.

Keeping this in mind, SH bidders will get shares for sure on the proportionate basis. So one can bid 13 lots in SH category and 13 lots in Retail category or above 13 lots in NII category to get the maximum benefit of allotment. Each category has to be applied by a separate application.

After Day 3 Subscription Number – Strategy for SBI Cards IPO

Day 3- Retail category is over-subscribed, one extra day for retail users, we are assuming retail will over-subscribe by min 3 to 5x. So it’s sure that there will be a lottery. In such a case, we personally suggest applying 1 lot in retail category.

Day 3- Shareholders category is over-subscribed. Still 1 more days to go, we are assuming Shareholder quota will over-subscribed by min 5 to 7x. As per RHP, allotment is going to be done via a proportionate basis. If that holds good, you will get some shares for each lot.

QIB is over-subscribe by 57x and NII - HNI is also over-subscribe and going to get good volume tomorrow.

Things are not 100% clear, but if you wish to invest in retail and shareholder category - the best approach after day 3 is 1 lot (19 shares) in retail and up to 13 lots in shareholder quota. In that case, you may or may not get the retail lot because of the lottery but you will get some shares in SH quota, numbers will depend on how much time it's over-subscribed after day 4 and allotment strategy.