SBI Card IPO Price Band Fixed At Rs 750-755 Per Share

The State Bank of India (SBI) said that the price band for IPO (initial public offering) of SBI Cards and Payment Services has been fixed at Rs 750-755 per share. At the higher end of the price band, the SBI Cards IPO is expected to raise around Rs 9,000 crore.

The issue will be open for subscription from 2 March to 5 March.

Eligible employees will be offered an employee discount of Rs 75 per share, SBI said in its regulatory filing on Tuesday and the bid lot for the IPO has been finalized to be 19 shares and in multiples of 19, thereafter.

The Rs 9,000 crore issue will offer fresh equity worth Rs 500 crore and up to 130.5 million shares through the offer-for-sale (OFS) route, the prospectus, dated 18 February showed.

The OFS will include up to 37,293,371 share sale by SBI and up to 93,233,427 shares on offer by Carlyle Group.

SBI holds 76 percent stake in SBI Cards and rest of the stake is held by Carlyle Group.

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.

With a market share of 18 percent, it is India's second-largest credit card issuer.