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Coronavirus Triggers Massive Wipeout of Investor Wealth
Mar 16, 2020

The chart of the day shows the trend in the total market capitalisation of all BSE-listed companies since the start of 2020.

As you can see, through most of January and February, the total market capitalisation hovered between Rs 150-160 trillion.

It was only in the last week of February that a massive sell-off started on rising fears of the coronavirus outbreak escalating into a global pandemic.

On 2 March, the day the SBI Cards IPO opened for subscription, the total market capitalisation of BSE-listed companies closed at about Rs 146 trillion. Do recall that this was after the 7% crash in the Sensex the previous week.

By 13 March, this figure plunged even lower to Rs 129 trillion.

So, from the time of the IPO opening for subscription to a day prior to listing, investor wealth worth Rs 17 trillion got wiped out, representing a plunge of over 11%.

Given these factors, I believe that SBI Cards will list at a discount to the issue price of Rs 755 per share.

Data source: BSE

This Chart Of The Day was published in The 5 Minute WrapUp - Did the SBI Cards IPO Test Positive for Coronavirus?

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