Left Menu
Development News Edition

SBI Cards gets Sebi's go ahead to float IPO

PTI | New Delhi | Updated: 17-02-2020 16:47 IST | Created: 17-02-2020 16:17 IST
SBI Cards gets Sebi's go ahead to float IPO
Representative Image Image Credit: ANI

SBI Cards and Payment Services, the credit card unit of the country's largest lender State Bank of India (SBI), has received markets regulator Sebi's go ahead to float an initial public offering. The company, which had filed draft IPO papers in November, obtained "observations" from the Securities and Exchange Board of India (Sebi) on February 11 latest update with the regulator showed.

Sebi's observations are necessary for any company to launch public issues including initial public offer, follow-on public offer and rights issue. As per the draft papers, SBI Cards will offer up to 130,526,798 equity shares through offer for sale route. This will include up to 37,293,371 share sale by SBI and up to 93,233,427 shares on offer by Carlyle Group. In addition, the company will also issue fresh equity shares of Rs 500 crore.

SBI holds 76 per cent in SBI Cards and rest of the stake is held by Carlyle Group. According to market sources, the IPO size could be estimated at more than Rs 6,000 crore.

SBI Cards is the second-largest credit card issuer in India with an 18 per cent market share. 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.

Earlier in December, SBI Chairman Rajnish Kumar had said the SBI Cards IPO would be launched in the coming months. Apart from SBI Cards, Mukesh Trends Lifestyle has also received Sebi's go ahead on February 14 to launch its IPO.

The Ahmedabad-based company's IPO consists an issue of up to 1 crore equity shares of face value of Rs 10 each and according to market sources, the IPO issue size will be approximately between Rs 70 and 90 crore.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

Download The Devdiscourse News App for Latest News.


TRENDING

OPINION / BLOG / INTERVIEW

Maritime transport post-COVID 19: Disruptions ahead in business models, techno-investments, regulations

Cargo shipping is a crucial part of the global supply chains and is likely to become more resilient along with efforts to make supply chains resilient but cruise liners could face much more disruptive changes....

Asia-Pacific response to COVID-19 and climate emergency must build a resilient and sustainable future

... ...

Videos

Latest News

Irish restrictions likely in place for weeks - health minister

Irelands health minister expects to be advised on Friday to keep the significant restrictions to slow the spread of the coronavirus in place for a period of weeks but that the country will have to move onto a different terrain after that.Wh...

Saudi, Russia debate record oil cut as U.S. resists action

OPEC and Russia will debate record oil output cuts on Thursday to prop up prices wrought by the coronavirus pandemic but their talks are complicated by internal disagreements and the reluctance of the United States to join the action.Global...

Pak attempting to score narrow political goals by trying to bring COVID-19-related interactions under formal SAARC umbrella: Sources.

Pak attempting to score narrow political goals by trying to bring COVID-19-related interactions under formal SAARC umbrella Sources....

EMERGING MARKETS-Stocks, currencies gain; U.S. jobs, OPEC meeting in focus

Emerging-market stocks and currencies rose on Thursday, eyeing weekly gains, as a softer dollar and hopes coronavirus cases were peaking prompted some buying in risk assets. Still, markets havent yet seen the full extent of the pandemics ec...

Give Feedback