Stocks

SBI Cards IPO to have exclusive day for retail investors?

Our Bureau Chennai | Updated on February 19, 2020 Published on February 19, 2020

The initial public offering of SBI Cards and Payment Services will be kept open for four days, according to market sources. The IPO is expected to be launched between March 2 and 5, they added. Currently, IPOs are open for public subscription only for three days.

The fourth day will be exclusively for retail investors, HNIs and shareholders and the bidding will be compulsory closed at 5 pm on the last day, sources said, and added individuals with SBI shares in their DP accounts, (the day the RHP was filed) can apply in both — retail and shareholders category — if the application amount is retail.

HNI applications can be made in either one of the categories.

SEBI last week cleared the IPO of SBI Cards, after raising some doubts with its lead manager.

Shareholders

SBI currently holds (along with its nominees) 68.99 crore equity shares, constituting 74 per cent stake of the pre-offer issued, subscribed and paid-up equity share capital of the company.

According to the draft red herring prospectus, the offer will comprise a fresh issue of equity shares aggregating to ₹500 crore and an offer-for-sale by promoter SBI (3.72 crore equity shares) and by investor CA Rover Holdings (9.32 crore equity shares). The reserved portion for SBI shareholders is up to 1.3 crore equity shares and that for SBI Cards employees is 18.64 lakh equity shares.

SBI Cards offers a wide range of credit cards to individual and corporate clients including lifestyle, rewards, shopping, travel, fuel, banking partnership cards and corporate cards.

The net proceeds of the fresh issue will be used to augment its capital base to meet future capital requirements.

The DRHP said that post IPO, SBI and CA Rover Holdings will continue to hold significant stakes in SBI Cards.

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Published on February 19, 2020
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