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Tuesday, March 31, 2020

SBI Cards IPO price band at Rs 750-755

The IPO, which opens on March 2 and closes on 4, comprises fresh issue of equity shares aggregating to Rs 500 crore and an offer for sale where promoters will offload nearly 13 crore shares.

By: ENS Economic Bureau | Mumbai | Published: February 26, 2020 3:08:34 am
 SBI Cards gets Sebi go ahead to float IPO, SBI Cards IPO, SBI Cards IPO news, state bank of india sbi cards, sbi cards initial public offer gets sebi go ahead, market news, business news, company news The company is expected to come within the top 50 in terms of market capitalisation after listing on the bourses. Markets are estimating a market capialisation of Rs 70,000 crore for SBI Cards. (File photo)

SBI Cards & Payment Services, India’s second largest card issuer, is hitting the market with a Rs 9,000-crore initial public offering with a price band of Rs 750-755 per share. The IPO, which opens on March 2 and closes on 4, comprises fresh issue of equity shares aggregating to Rs 500 crore and an offer for sale where promoters will offload nearly 13 crore shares.

Promoters SBI and Carlyle Group will offload 3.73 crore shares and 9.32 shares respectively. SBI holds 74 per cent in SBI Card and the rest by the Carlyle Group and they will pare their stakes by 4 per cent and 10 per cent respectively, SBI Managing Director Dinesh Khara said.

The company is expected to come within the top 50 in terms of market capitalisation after listing on the bourses. Markets are estimating a market capialisation of Rs 70,000 crore for SBI Cards.

SBI Cards market share in terms of the number of credit cards outstanding is 18 per cent. The pure-play credit card company’s gross NPA stood at 2.47 per cent in December 2019 compared to 2.44 per cent in March 2019 and 2.83 per cent in March 2018, he said.

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