New Delhi, Mar 3 (IANS): SBI Cards's mega IPO was subscribed 39 per cent on Day 1, riding on its parentage.

The public offer was subscribed 38.87 per cent on the first day of the bidding process on Monday. The price band for the issue was fixed at Rs 750-755 and the minimum amount one can invest by subscribing to a lot of 19 shares is Rs 14,345.

SBI Cards IPO received 3.91 crore bids compared to the issue size of 10.02 crore shares. Total 2.73 crore bids were received at a cut off price of Rs 755 per share.

The IPO will close on March 5.

The issue received bids for 3,94,54,830 shares compared with the issue size of 10,02,79,411 shares, representing 38.87 per cent of the issue. The company has already raised Rs 2,769 crore from 74 anchor investors, including 12 mutual funds.

According to the company, SBI Card IPO saw record 8.52 lakh applications on the first day. The retail portion was subscribed 62 per cent, while the portion allotted for SBI shareholders saw a subscription of 69 per cent.

The biggest strength of the company is the SBI's parentage, whose brand is highly trusted. The credit card-to-debit card ratio stands at 3.7 per cent for SBI Card compared with 45 per cent for HDFC Bank, 28 per cent for Axis Bank and 18 per cent for ICICI Bank, which suggests scope for SBI Card mining SBI customers.

SBI Card has higher NPAs at 2.5-2.6 per cent against an industry average of 1 per cent. It will keep credit cost for SBI Card at an elevated level of 0.4 per cent, Prabhudas Lilladher said.

SBI Cards and Payment Services - the credit card arm of the country's largest lender State Bank of India (SBI) - aims to raise around Rs 10,350 crore through the IPO, including new shares worth Rs 500 crore and an offer for sale of 13.05 crore shares.