SBI share price: SBI Cards IPO to have a positive impact on parent, says Anand Rathi Securities' Nilesh Jain
SBI share price: State Bank of India's (SBI) shares may likely be positively impacted by the SBI Card IPO according to Nilesh Jain, stock market expert at Anand Rathi Securities
SBI share price: State Bank of India's (SBI) shares may likely be positively impacted by the SBI Card IPO, according to Nilesh Jain, stock market expert at Anand Rathi Securities. SBI Cards & Payments Services Ltd, a payment solutions provider of SBI, on Tuesday, received in-principle approval for the IPO (initial public offering) from the market regulator Securities and Exchange Board of India (SEBI).
Nilesh Jain said that the SBI stock will likely gain from the IPO launch. SBI shares today closed at Rs 320.35 on the Sensex, going down by 1.2%. Jain said that, though the SBI stock ended the day in green, the chances for it to gain are good in the next few sessions.
SBI Card IPO tentative date is most probably in the first week of March 2020. SBI Cards and Payment Services, a subsidiary of the country's largest lender State Bank of India is expecting to raise Rs 6000 crore from the SBI Card IPO. Banking heavily upon the SBI — India's largest commercial bank and promoter of SBI Card — the IPO is expected to outperform other IPOs' performances in the recent past, say some stock market experts, Zee Business earlier reported.
Though public sector banks, including the largest state-run lender the State Bank of India (SBI) has been in red for quite some time and has been underperforming for quite some time, investors should take a medium-to-longterm view of the stock, Nilesh Jain said.
The technical analyst said that those investors who are willing to invest in SBI shares need not be worried because of the current stock performance. The SBI shares have taken a beating over a month period, reaching a one-month peak of Rs 335.25.
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Jain puts a target price between Rs 360 and Rs 370 over a 2-3 month period, keeping the stop loss around 310.
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