Enjoy! SBI card IPO opens on March 2, issue of 13 million shares

Mumbai, February 20, 2020 Thursday

SBI Card IPOs are a big news for investors waiting on the verge. The IPO of the SBI card will open on March 2 next. Market Director Sebi

This information comes from the prospectus of the company's IPO. Stock market analysts are hopeful that after IRCTC, SBI card stock will also be listed at a steep premium, giving investors a bumper profit.

Can be bid up to March 5

As per the February 18 prospectus, the company will bring 13.05 crore shares worth Rs 500 crore. The bidding process for the IPO will end on March 5. Through this IPO

The company can raise Rs 9000 to Rs 10,000 crore.

13 million shares will be issued

According to the DRHP filed last year, the company will bring 13,05,26,798 equity shares in the market through the Four Sales. Of these, shares of SBI sold up to 3,72,93,371 and SBI while 9,32,33,427

Shares will sell to Carlyle Group (CA Rover). In addition, the company will also issue fresh equity shares worth Rs 500 crore. SBI Cards have 76 per cent stake in SBI Cards while the remaining stake is with Carlyle Group.

Expect huge profits

Shares of SBI Cards and Payment Services are trading at a premium of Rs 200-250 in the gray market. The Economic Times has provided this information to three dealers involved in such trades. IPO

For this, the value of the company can be estimated at Rs 57,000-60,000 crore. Abhinav Khatri, MD, Financial Services Advisory Firm Wealth Wealth, said:

Demand, because this theme is based on Indian Consumption Story. Investors are finding that the presence of SBI cards in a particular segment is showing great business potential.

These companies book-running lead managers

Kotak Mahindra Capital, Axis Capital, DSP Merrill Lynch, Nomura Financial Advisory, HSBC Securities and SBI Capital Markets are the book-running lead managers of this IPO.

95 lakh subscribers of SBI Cards

According to a report in the Economic Times in November, SBI has about 95 lakh subscribers of the card and is the second largest issuer of card after HDFC bank. RBI statistics

In the last three years, credit card spending in India has increased at an annual rate of 35.6 per cent, while credit card outstandings have increased by 25.6 per cent. Card business

The industry average is 3.5%. In the last 6-7 years, the Return on Equity (RoE) of the SBI card has not been less than 25% and in the meantime its average has been 30%.