SBI Cards IPO to open for subscription on March 2

SBI Cards IPO to open for subscription on March 2

SBI Cards plans to issue new shares worth ₹500 crore 

Will offer up to 130.5 million shares for sale

The ₹9,000 crore initial public offering (IPO) of SBI Cards and Payment Services, the credit card arm of State Bank of India (SBI) , will open on March 2, according to its prospectus. SBI Cards is the second-largest credit card issuer in India with an 18 per cent market share.

The bidding process will close on March 5.

SBI Cards will offer up to 130,526,798 equity shares through offer for sale route

37,293,371 share sale by SBI and 

up to 93,233,427 shares on offer by Carlyle Group

SBI holds 76% in SBI Cards and rest of the stake is held by Carlyle Group

Kotak Mahindra Capital, Axis Capital, DSP Merryl Lynch, Nomura Financial Advisory, HSBC Securities and SBI Capital Markets are the book-running lead managers of the issue

SBI Cards was launched in October 1998 by the State Bank of India and GE Capital. In December 2017, State Bank of India and The Carlyle Group acquired GE Capital`s stake in the Company. The company offers Indian consumers access to a wide range of value-added payment products and services. With a customer base of over 9 million, SBI Card operates through a footprint of more than 130 cities in India

For the six months to last September, SBI Cards reported revenue growth of 36% to ₹4,363.9 crore from a year-ago. Its profit jumped 78% to ₹1,034.58 crore during the period.

Source : LiveMint