The much anticipated ₹9,000-crore initial public offering (IPO) of SBI Cards and Payment Services will open for subscription on March 2. The salient features of the issue are as under:
- The price range has been fixed at ₹750-755 per share, Wall Street Journal reported, citing the term sheet.
- India’s biggest brokerage Zerodha also mentioned this price range on its website.
- The lot size of SBI Cards IPO, or the minimum number of shares to be subscribed, has been fixed at 19 shares, says Zerodha.
- SBI Cards IPO will close on March 5. SBI Cards shares are expected to be listed on BSE on March 16, the Wall Street Journal reported.
- Link Intime India Private Limited is the registrar to the offer.
- SBI Cards will offer up to about 13 crore equity shares through an offer-for-sale route. This will include up to 37,293,371 share sale by SBI and up to 93,233,427 shares on offer by Carlyle Group.
- In addition, the company will also issue fresh equity shares of ₹500 crore.
- SBI holds 76% in SBI Cards and the rest of the stake is held by Carlyle Group.
- SBI Cards is the second-largest credit card issuer in India with an 18% market share.
- SBI Cards was launched in October 1998 by SBI and GE Capital. In December 2017, State Bank of India and the Carlyle Group acquired GE Capital’s stake in the company.
- Bank of America Securities, Axis Capital, Kotak Investment Banking, HSBC and Nomura are the financial institutions advising SBI Cards on the IPO.
Key Notes:
- SBI Cards IPO will open for subscription on March 2
- SBI Cards is the second-largest credit card issuer in India with an 18% market share.
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