SBI Cards IPO To Open For Subscription On March 2
A pedestrian uses a smartphone while standing across a State Bank of India Ltd. (SBI) branch in Bengaluru, India. (Photographer: Karen Dias/Bloomberg)

SBI Cards IPO To Open For Subscription On March 2

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The Rs 9,000-crore initial public offering of SBI Cards and Payment Services Ltd., a joint venture of State Bank of India and Carlyle Group, will open for subscription on March 2.

The firm, which had filed draft IPO papers in November 2019, received "observations" from the Securities and Exchange Board of India on Feb. 11. The IPO will open for subscription on March 2 and close on March 5, SBI said in a regulatory filing.

"Further, SBI has been informed by SBI Cards that, in compliance with applicable law...anchor Investors shall bid one working day prior to the bid/offer opening date, being Feb. 28, 2020," it said. Subscription period for qualified institutional buyers will close one working day prior to the closing date on March 4, it said.

According to the draft IPO papers, SBI Cards will offer up to 130,526,798 equity shares via an offer-for-sale route. SBI will sell 37,293,371 shares and Carlyle Group will offload 93,233,427 shares. The company will also issue fresh equity worth Rs 500 crore.

Also Read: Five Things SBI Cards IPO Tells Us About The Payments Industry

SBI holds 76 percent stake in SBI Cards and the rest of the stake is held by the private equity firm. The company is the second-largest credit card issuer in India with 18 percent market share.

SBI Cards was launched in October 1998 by SBI and GE Capital. In December 2017, SBI and Carlyle Group acquired GE Capital's stake in the company.

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