SBI Cards IPO may be priced at Rs 750-755
About 1.31 crore shares have been reserved for SBI shareholders.
By ET Bureau | Updated:
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The Rs 9,500-crore initial public offering (IPO) of SBI Cards and Payment Services is likely to be priced in band of Rs 750-755, said bankers. The issue, which will hit the street on March 2, is expected to be open for subscription for four days as against the usual three days on expectations of strong investor appetite.
The fourth day of the IPO will be kept exclusively for retail investors, high network investors (HNIs) and SBI shareholders, according to banking sources.
About 1.31 crore shares have been reserved for State Bank of India shareholders. SBI shareholders as on February 20, 2020, the day of filing red herring prospectus, can apply in both - retail and shareholder’s category if application amount falls within the limit of Rs 2 lakh.
SBI Cards — India’s second-largest credit card firm — will offer up to 13.71 crore equity shares with a face value of Rs 10 via offer for sale route, according to the draft red herring prospectors (DRHP). This will include up to 3.73 crore share sale by SBI and up to 9.32 crore shares by Carlyle Group (CA Rover). In addition, the company will also issue fresh equity shares of Rs 500 crore. SBI holds 76 per cent in SBI Cards and the rest is held by the Carlyle Group.
In the unofficial grey market, SBI Cards shares are being traded at about Rs 1,080 apiece, which is a premium of Rs 330 per share, or 44 per cent above their likely IPO price. At the grey market price, SBI Cards is valued at almost Rs 1 lakh crore. Parent SBI’s market value is about Rs 2.92 lakh crore.
The fourth day of the IPO will be kept exclusively for retail investors, high network investors (HNIs) and SBI shareholders, according to banking sources.
About 1.31 crore shares have been reserved for State Bank of India shareholders. SBI shareholders as on February 20, 2020, the day of filing red herring prospectus, can apply in both - retail and shareholder’s category if application amount falls within the limit of Rs 2 lakh.
SBI Cards — India’s second-largest credit card firm — will offer up to 13.71 crore equity shares with a face value of Rs 10 via offer for sale route, according to the draft red herring prospectors (DRHP). This will include up to 3.73 crore share sale by SBI and up to 9.32 crore shares by Carlyle Group (CA Rover). In addition, the company will also issue fresh equity shares of Rs 500 crore. SBI holds 76 per cent in SBI Cards and the rest is held by the Carlyle Group.
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)
In the unofficial grey market, SBI Cards shares are being traded at about Rs 1,080 apiece, which is a premium of Rs 330 per share, or 44 per cent above their likely IPO price. At the grey market price, SBI Cards is valued at almost Rs 1 lakh crore. Parent SBI’s market value is about Rs 2.92 lakh crore.
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