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Last Updated : Mar 06, 2020 08:12 PM IST | Source:

SBI Card sets issue price at Rs 755, raises Rs 10,340 crore via IPO

State Bank of India and CA Rover together received Rs 9,840 crore, by reducing their stake through IPO.

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SBI Cards and Payment Services, the country's second-largest credit card issuer on March 6 fixed the final issue price for its initial public offering at Rs 755 per share. The issue closed on March 5.

The company raised Rs 10,340 crore through the issue which was open for subscription between March 2-March 5, 2020.

The IPO has received strong response from investors, getting bids of more than 266 crore equity shares against offer size of over 10 crore shares (excluding anchor book). This means SBI Card got bids worth more than Rs 2 lakh crore.


The issue was oversubscribed 26.54 times as the portion set aside for qualified institutional buyers saw subscription of 57.18 times and that of non-institutional investors 45.23 times and retail 2.5 times.

The reserved category of employees, for whom SBI Cards offered shares at a discount of Rs 75 over the final IPO price, was subscribed 4.74 times and SBI shareholders' portion subscribed 25.36 times.

The IPO consists of a fresh issue of Rs 500 crore and an offer for sale of more than 13 crore shares by parent firm State Bank of India and global investor CA Rover Holdings, an affiliate of private equity firm Carlyle Group.

State Bank of India and CA Rover together received Rs 9,840 crore, by reducing their stake through IPO.

SBI Card is expected to list on bourses on March 16, exactly five trading sessions after its IPO closing date.

"SBI Cards and Payments Services Limited would be the very first in the credit card space to be listed on Indian bourses. This Company has significantly gained public interest and justifiably so as it is the second largest credit card issuer with a market share of 18.10 percent, only after HDFC Bank with a market share of approximately 27 percent," Umesh Mehta, Head of Research at Samco Securities told Moneycontrol.

Additionally, it is the most profitable vertical of State Bank of India, it is the largest and only promoter, which reflects their commitment to maintain and garner growth within the overall industry, he said.

"We also cannot ignore the diversified reach of SBI Cards through a network across multiple channels, along with SBI’s vast customer base of around 44.55 crore. Financially, as well as operationally, the company has delivered a robust performance in the past three years," he added.

The actual object of the offer is to achieve the benefits of listing on stock exchange, carry out the offer for sale by selling share and to enhance visibility and create a corporate brand image. The net proceeds from the fresh issue would be utilised towards strengthening the company's capital base.

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First Published on Mar 6, 2020 08:12 pm
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