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State Bank of India has set the ball rolling for taking its credit card venture SBI Cards & Payment Services Pvt Ltd (SBICPSL) public through an initial public offering.
Close on the heels of SBI’s Executive Committee of the Central Board giving its in-principle approval for the IPO, SBICPSL has now invited expression of interest for engagement of book running lead managers (BRLMs) and legal counsels for the proposed IPO.
SBI’s Central Board had last week only given an in-principle nod for stake dilution, “No decision has yet been taken on the likely quantum of planned dilution in SBI Card,” sources in the bank said.
Currently, SBI holds 74 per cent in the credit card joint venture while the remaining 26 per cent is with the Carlyle Group.
It may be recalled that SBI Managing Director Dinesh Khara had in January 2018 told BusinessLine that SBI was keen to take its card venture public over the medium term.
He had then said that the IPO could happen once SBI raises its stake in the credit card venture to 74 per cent post GE exit.
Prior to GE’s exit, SBI Card operated through two businesses — SBICPSL and GE Capital Business. Now, both the businesses have been merged after SBI raised overall stake in the cred card joint venture to 74 per cent.
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