SBI Cards and Payment Services Ltd IPO Message Board (Page 123)

Correct, bulls eye, bingo, you got it right

Hahaha

Kya faheda fir SBI ka share leke rakhne ka itne time se ????

To clarify everyone on this board,

Ujjivan Financial share holders category maximum permitted application amount is Rs.2 lakhs. SBI Cards shareholders category maximum permitted application amount is up to issue limit.

In both cases allotment was/is proportionate subject to minimum lot. There is lot wise lottery till the lot applied matches times off oversubscription. This method was followed in ICICI Prudential life insurance, ICICI Lombard, HDFC Standard Life shareholder quota too. For eg, in Ujjivan shareholder quota those who applied for 1 lot of 400 and 2 lots of 800 were allotted under lottery , not as a minimum one lot for all as in Retail Individual investors. Please check the basis of allotment here.

https://www.chittorgarh.com/ipo_basis_of_allotment/ujjivan-bank-ipo/1023/

In SBI cards shareholders those applying above Rs. 2 lakhs are treated same as NIIs. As per page 404 to 429 of RHP,
Those applying over Rs.2 lakh cut off time is 3 PM on closing day
Payment mode is ASBA and UPI not permitted
Bid has to be at a price in band, can not use as "Cut Off"
Not permitted to apply in Retail Individual Investor. If applied liable to be treated as multiple applications.

In case of oversubscription , all applications will be segregated based lot wise and stepwise oversubscription will be computed. Wherever number of lots is less than number of total oversubscription minimum lot will bee given by lottery. Oversubscription level when added with above Rs.2 lakh application value wise can go up taking this number high, reducing chances of allotment.

Trust this helps

@ Ou AI

No

For SBI cards ipo under shareholder category

Its only proportionate.
There is no such thing as subject to minimum lot

For Ujjivan it was over subscribed App wise but if we go through application wise it was under subscribed..
And there was option of subject to minimum lot so everyone under share holder category got atleast 1 lot even if u have applied for 1 lot.

Same will not happen in SBI cards IPO. Even though if Application wise shareholder category remains under subscribed still not everyone will get confirm 1 lot of 19 shares.

Arre bhai prasad jo batega uski suruwat kis side hogi jo jyada paisa laga ke baitha ya kam paisa jo lagaya hai as per application wise subscription.
Application wise subscription ka koi importance hai bhi ya nhi...

One thing for sure, many applications is going to be rejected for the confused understanding about this ipo!!!

"Shareholder Category" is defined by SEBI as those shareholders (basis record date as per filing of RHP/DRHP as presrcibed) applying under Rs 2 lac. Lack of clarity in RHP of SBI Cards does not over rule this.

Also if the purpose of "shareholder quota" is similar to that of retail quota (ie Rs 2 lac limit) then allotment in terms of number of lots (1 or more) is possible (except for a few adjustment shares of left over quantity after dividing by lot size). I believe 1 lot is possible unless oversubscribed by more than the no of lots for Rs 2 lac (eg: If less than Rs 2 lac has 19 lots then up to 19x valid (and qualified) subscription in shareholder category everybody gets one lot).

Baaki sab waqt batayega....

Under which SEBI regulations is it mentioned that Shareholder means is the one who applies under two lakhs?
Shareholder can be ether holding 1 or 100 or 1000 or 10000 depending on heir worth. However, Retail investor is defined by SEBI as one investing below two lakhs. Purpose of shareholder quota is to offer shareholder rights of preference. To be able to participate in Retail one can not invest more than two lakhs. So anyone investing above that in QIB, NII or Shareholder is barred from investing under retail.

Hi, Just a lil bit from another website:

How is allotment done in shareholder category?
When it comes to allotment, bid amount of up to INR200,000 (net of discount, if any) only is considered in the first instance. In the event of under-subscription, the unsubscribed portion will be available for allotment, proportionately to all eligible investors who had bid in excess of INR200,000. It is not often that shareholder category will see under-subscription in the IPOs of well-run companies. However, sometimes markets present such opportunities.

Hi Ou Ai, Plz refer Comment No 862...im unable to post it in the reply to Comment Trail 863

@VKalpesh

Did you check the basis of allotment link for Ujjivan posted in my comments? If as you mentioned everyone in shareholder category got one lot, how about those who applied in 400 and 800 numbers and did not get under lory system? Why were they excluded?

They did not get because allotment was not application wise. Only those who applied over 3 lots got firm. Please Ujjivan basis of allotment carefully. You have the answer