SBI Card IPO price band fixed at Rs 750-755
The issue will open for subscription on March 2 and close on March 5.
By ETMarkets.com | Updated:
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MUMBAI: Top lender State Bank of India said the price band of initial public offering of SBI Cards and Payment Services has been fixed in the price range of Rs 750-755 per share.
At the higher end of the price band, the SBI Cards IPO is expected to raise around Rs 9,000 crore, making it the fifth-largest IPO so far.
The issue will open for subscription on March 2 and close on March 5.
The IPO comprises a fresh issue of Rs 500 crore, while the offer for sale would see the promoters offload 13 crore shares.
The secondary share sale will include up to 37.29 million share sale by SBI and up to 93.23 million shares on offer by the Carlyle Group. SBI holds 74% in SBI Card, while the rest is held by Carlyle. Both will pare their stakes by 4% and 10%, respectively, via the initial share sale.
An employee discount of Rs 75 per share will be offered to eligible employees, said SBI in a regulatory filing on Tuesday. The bid lot for the IPO has been finalized to 19 shares and in multiples thereafter.
SBI Cards, the credit card unit of the country's largest lender SBI, is the second-largest credit card issuer in India, with an 18 percent market share.
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.
At the higher end of the price band, the SBI Cards IPO is expected to raise around Rs 9,000 crore, making it the fifth-largest IPO so far.
The issue will open for subscription on March 2 and close on March 5.
The IPO comprises a fresh issue of Rs 500 crore, while the offer for sale would see the promoters offload 13 crore shares.
The secondary share sale will include up to 37.29 million share sale by SBI and up to 93.23 million shares on offer by the Carlyle Group. SBI holds 74% in SBI Card, while the rest is held by Carlyle. Both will pare their stakes by 4% and 10%, respectively, via the initial share sale.
An employee discount of Rs 75 per share will be offered to eligible employees, said SBI in a regulatory filing on Tuesday. The bid lot for the IPO has been finalized to 19 shares and in multiples thereafter.
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SBI Cards and Payment Services, a subsidiary of the State Bank of India (SBI), will hit the primary market with a Rs 10,350 crore initial public offering on March 2. The IPO will be the fifth biggest in India so far. With investor interest already high in the IPO, we bring you all the details you need to know before hitting 'subscribe' on the issue:
(With inputs from Yes Securities and Axis Capital)
SBI Cards, the credit card unit of the country's largest lender SBI, is the second-largest credit card issuer in India, with an 18 percent market share.
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.
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