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

All party meeting - Blocking dialogue not culture of Bengal, Mamata needs to speak up

If that happens, history will record it as the dark age of Bengal....

Diya Jalao for COVID 19: How Modi put Power Grids and power warriors at risk?

While Prime Minister Narendra Modis staunch supporters are busy in search of hidden science behind the sudden announcement of 9minutes9pm campaign but his ignorance of the actual science has put the nation in another danger. The scientists ...

Videos

Latest News

Soccer-Dutch league plans to restart without fans on June 19 - reports

The Dutch FA KNVB plans to resume the suspended soccer season for its top two divisions on June 19 without supporters attending matches after a meeting of clubs and other major stakeholders on Tuesday, local media reported.It is hoped that ...

ANALYSIS-All for one and one for all? Euro zone will for joint bonds tested

Step-by-step, the coronavirus crisis is forcing the euro zone into greater integration. But like the euro zone debt crisis before, it may not deliver what bond markets really crave.A long called for joint euro bond is back on the agenda, bu...

UK's Raab says PM Johnson breathing without assistance, continues to be monitored

British Prime Minister Boris Johnson is breathing without any assistance and continues to be monitored in critical care, foreign minister Dominic Raab said on Tuesday. Raab, who is deputising for Johnson, said the British leader had remaine...

No requirement to invoke roaming arrangement: Airtel CTO

Bharti Airtels chief technology officer on Tuesday played down the need for having intra circle roaming arrangement, for which the company had approached all its competitors earlier. The telecom operator had said it is an important measure ...

Give Feedback