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SBI Cards IPO: Good News! SBI credit card business IPO to open on March 2; Check price band

SBI Cards IPO: The $1.25 billion (Rs 9,000 cr) 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.

India TV Business Desk India TV Business Desk
New Delhi Updated on: February 20, 2020 15:10 IST
SBI Cards IPO: Good News! SBI credit card business IPO to

SBI Cards IPO: Good News! SBI credit card business IPO to open on March 2; Check price band

SBI Cards IPO: The $1.25 billion (Rs 9,000 cr) 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. The company plans to issue new shares worth 5 billion rupees and will offer up to 130.5 million shares for sale, the prospectus, dated February 18, showed.

Market regulator Securities and Exchange Board of India (SEBI) granted in-principal nod for the IPO of SBI arm last week.

The offer price for IPO is likely to be fixed between Rs 745-775 per share. The bidding process will close on March 5.

Meanwhile, replying to India TV, SBI Cards shared investor helpline for any IPO related queries.

SBI Cards and Payment Services is backed by State Bank of India and private equity firm Carlyle Group. SBI holds 76% in SBI Cards and rest of the stake is held by Carlyle Group.

SBI Cards will offer up to 130,526,798 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.

Currently, SBI Cards is rated AAA and A1+ by both rating firms CRISIL and ICRA. As per Crisil's report, SBI Cards is the leading player in open market customer acquisition in India.

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