India’s largest lender State Bank of India (SBI) on Monday announced key details of the much-awaited initial public offering (IPO) of its credit card unit SBI Cards and Payment Services.
SBI said the IPO committee of SBI Cards in consultation with the book running lead managers have finalised the price band of the offer in the range of Rs 750-755 per equity share. This implies that at the higher end of the price band, the SBI Cards IPO would be able to raise around Rs 9,000 crore.
An employee discount of Rs 75 per equity share will also be offered to eligible employees in accordance with the terms and conditions stipulated in the red herring prospectus dated 18 February, SBI said.
Additionally, the bid lot for the SBI Cards offer has been finalized at 19 equity shares and in multiples of 19 equity shares thereafter. The lot size is defined as the minimum count of shares the investor can apply for while bidding in an IPO.
SBI Cards IPO will be open for subscription from 2 March to 5 March. According to a news report, the shares are expected to be listed on exchanges on 16 March. Link Intime India Pvt. Ltd is the registrar to the offer.
The SBI Cards IPO comprises a fresh equity issuance of Rs 500 crore and an offer for sale (OFS) of up to 130,526,798 equity shares. This will include sale of up to 37,293,371 shares by SBI and up to 93,233,427 shares by Carlyle Group.
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. Currently, SBI holds 76% stake in SBI Cards, while the rest is held by private equity firm Carlyle Group.
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