The highly anticipated primary issue of the year, SBI Cards initial public offer (IPO), opens for subscription on Monday (March 2). The SBI Cards IPO, which is the fifth-biggest issue in India so far, comprises of a fresh issue of Rs 500 crore and an offer for sale of Rs 9,855 crore.
The introduction of the IPO will increase the paid up capital of SBI Cards from Rs 932.3 crore to Rs 939 crore. Price band of the issue is fixed at Rs 750-Rs 755. SBI Cards IPO can be applied in lot sizes of 29 shares and in multiple thereafter. Our of the total IPOs, 35% is reserved for retail investors and 1.49 crore shares are reserved for employees and shareholders of State Bank of India. The employees of SBI will get Rs 75 discount on the issue price. The last date to apply for the IPO is Thursday (March 5).
SBI Cards and Payment services is a non-deposit taking NBFC and is a subsidiary of SBI, India's largest bank. Established in 1998, the company was initially a joint venture between SBI and GE Capital Mauritius Overseas Investment but GE Capital sold its entire 40% stake to SBI (14%) and CA Rover Holdings (26%) in December 2017. Notably, SBI Cards is the second-biggest credit card issuer in India.
The company offers various types of credit cards as per the needs of its clients. The company also offers corporate cards and is the largest co-branded credit card issuer in India. It also issues cards in partnership with other banks.