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SBI Cards IPO Likely Before March: Chairman

By Staff

In an interview with Economic Times, SBI Chairman Rajnish Kumar said that "in all likelihood," the SBI Cards IPO (initial public offering) will happen this quarter.

SBI Cards and Payments Services is the credit card unit of the State Bank of India (SBI). It has a market share of 18 percent in the country, second only to HDFC Bank Cards (at 27 percent).

As per its draft prospectus for the IPO, the company expects the number of credit cards to increase at an annual rate of 25 percent per year.

SBI Cards IPO Likely Before March: Chairman

When asked to comment on expectations of SBI Cards' valuation to be high with limited appreciation opportunity, Kumar told ET that while he cannot comment on the valuation, he can say that the penetration of credit cards in India is very low and demand will rise as the economy develops.

If the IPO sails through, it will be the fifth company in the SBI Group to be listed on the stock exchanges.

As per SBI Cards' draft prospectus, the company will be offering up to 130,526,798 equity shares via offer for sale route, which will include up to 37,293,371 share sale by SBI and up to 93,233,427 shares on offer by Carlyle Group (CA Rover). In addition, the company will also issue fresh equity shares worth Rs 500 crore.

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

Read more about: sbi cards ipo
Story first published: Monday, February 3, 2020, 16:21 [IST]
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