SEBI approves SBI Cards IPO
To begin with, SEBI approves IPO of SBI Cards and Payment Services. Besides, this exists as a subsidiary of the country’s largest lender State Bank of India. So then, the company might come about to raise around Rs 5,500 – 6,000 crores through the public offer. Also, sources say that the IPO would value the company at around Rs 55,000 – 60,000 crores.
Significantly, the firm might likely float its public issue at the end of this month, February. Besides, as per the DRHP filed with SEBI in November 2019, the public issue consists of a fresh offer. So then, this issue values up to Rs 500 crores. And an offer for sale of up to 13,05,26,798 equity shares.
Hence, the offer for sale includes up to 3,72,93,371 equity shares by SBI. Also, up to 9,32,33,427 equity shares by CA Rover Holdings.
Besides, SBI Cards would like to utilize the proceeds for augmenting its capital base to meet future capital requirements. Also, the State Bank of India owns a 74% stake in SBI Cards. So then, the rest belongs to CA Rover Holdings, an affiliate of Carlyle Asia Partners IV.
However, the book running lead managers to the issue remain Kotak Mahindra Capital Company and Axis Capital. Besides, it also includes DSP Merrill Lynch and HSBC Securities & Capital Markets (India). As well as Nomura Financial Advisory & Securities (India), and SBI Capital Markets also work as lead managers.