SBI's Credit Card Business IPO To Open On March 2
The company plans to issue new shares worth 5 billion rupees and will offer up to 130.5 million shares for sale, the prospectus, dated Feb. 18.
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The $1.25 billion initial public offering (IPO) of SBI Cards and Payment Services, the credit card arm of State Bank of India (SBI), will open on March 2, according to its prospectus.
The company plans to issue new shares worth 5 billion rupees and will offer up to 130.5 million shares for sale, the prospectus, dated Feb. 18, showed.
The bidding process will close on March 5.
The asking price for IPO is probably going to be fixed between Rs 745-775 per share and with this, SBI Cards is probably going to be valued at Rs 69,500-72,000 crore post listing, consistent with the news website reports.
SBI Cards intends to use the proceeds of the fresh issue for augmenting its capital base to satisfy its future capital requirements.
Currently, depository financial institution of India holds 74 per cent stake in SBI Cards and therefore the rest is held by CA Rover Holdings, an affiliate of Carlyle Asia Partners IV.
The book running lead managers to the difficulty are Kotak Mahindra Capital Company, Axis Capital, DSP Merrill Lynch, HSBC Securities and Capital Markets (India), Nomura Financial Advisory and Securities (India) and SBI Capital Markets.
(Reuters)