SBI Cards and Payment Service received in-principal approval of the market watchdog Securities and Exchange Board of India (SEBI) for floating its initial public offering (IPO). The IPO is likely to hit the primary market in February.
Through the initial public offering, the company will raise Rs. 6000 crore.
After the IPO, the company's value would be in the range of Rs. 55000- Rs. 60,000 crore, as per an online business portal's report.
Kotak Mahindra Capital Company, SBI Capital Markets, DSP Merrill Lynch, Axis Capital, HSBC Securities and Capital Markets, and Nomura Financial Advisory and Securities are the book-running lead managers for the issue.
SBI Cards, which is the credit card division of SBI, is owned by SBI with 76% stake and the remaining is held by CA Rover Holdings, an affiliate of Carlyle Asia Partners IV.
In accordance with the DRHP submitted with SEBI, the company would issue 13,05,26,798 equity shares, of which 3,72,93,371 equity shares will be offered by SBI and up to 9,32,33,427 equity shares by another stakeholder in the firm.
SBI Chairman Rajnish Kumar earlier in February said that the company would come up with its IPO during the January-March quarter.
After its listing on the exchanges, the company will be the fifth firm within SBI Group to be listed on the bourses.
IPO issue will include OFS for promoters to make an exit from the company while there will be issuance of fresh equity to augment capital base.
Further, as per reports through the OFS, the company's promoters SBI and Carlyle Group will partially divest their stake in SBI Cards by as much as 4% and 10%, respectively.