SBI Cards IPO: SBI Card IPO will throw up great opportunities: Hemang Jani

Will it a blind bet, is it a blind ‘subscribe’ when the IPO of SBI Cards hits the market on March 2?


I think such new companies and IPOs typically offer a great business opportunity for everyone, whether it is intermediaries, investors or people in the IPO funding business. Typically, there is going to be a certain amount of appetite for such companies, both from a funding point of view as well as retail investors’ participating and exiting on listing or some people holding on to it. We have seen in the recent past that a few companies like IRCTC and a bunch of others have really met with some degree of success. So there is definitely going to be a good amount of excitement around it. The size of the issue of both retail category as well as HNI category is reasonably good: 1,400 crore for HNI, and about 21-22 lakh shares for retail. So definitely I think there is going to be a lot of positivity and excitement around it. And it will throw up great opportunities.

How would you approach metals now, because just when you thought things were actually resurrecting for the sector, you have the first slash-down coming in for metal prices. Do you think this decline should be used as an opportunity to buy or would you say stay away from metals for now?

Since we are seeing incremental negative news flow on the spread of this virus, the overall sentiment for metals would remain a bit subdued for a longer period of time. Though the quarterly numbers from some of the metal companies were good, and there was a sense that you might see a bit of a rebound, it looks like this entire uncertainty will stretch for a bit longer and that is not a time to look at some of these high-beta names. So I definitely think the weakness in sentiment for metal sector would continue for some more time.