Receives bids for 225.09 crore shares
The initial public offer (IPO) of SBI Cards and Payment Services ended with robust subscription on Thursday (5 March). The issue received bids for 225.09 crore shares, as against 10.02 crore shares on offer. The issue was subscribed 22.45 times.
The issue opened for bidding on Monday, 2 March 2020. It closed for qualified institutional bidders (QIBs) on Wednesday (4 March) and it closed on Thursday (5 March) for all other investors. The price band was set at Rs 750 to Rs 755 per share.
On Wednesday, the quota reserved for QIBs was oversubscribed 57.18 times with total bids for 138.52 crore shares as against 2.42 crore shares on offer for them.
On Thursday, the non-institutional investors category was subscribed 45.23 times. The retail individual investors (RIIs) category was subscribed 2.50 times. The employees category was subscribed 4.74 times. The shareholders category was subscribed 25.36 times.
The company on 28 February 2020 raised Rs 2,769 crore from anchor investors, ahead of its initial share sale. The company allotted 3.66 crore shares to a total of 74 anchor investors, including 12 mutual funds, through 48 schemes, at the upper end of the price band at Rs 755.
SBI Cards and Payment Services is the second-largest credit card issuer in India with a 18.1% market share of the Indian credit card market in terms of the number of credit cards outstanding end November 2019 and 17.9% market share in total credit card spends in the eight months ended November 2019. The company offers an extensive credit card portfolio to individual cardholders and corporate clients, which includes lifestyle, rewards, travel and fuel, shopping, banking partnership cards and corporate cards covering all major cardholder segments in terms of income profiles and lifestyles.
The issue consisted of a fresh issue of equity shares (0.66-0.66 crore shares) aggregating up to Rs 500 crore and offer for sale of equity shares 13.05 crore equity shares aggregating up to Rs 9789.50-9854.80 crore.
The offer for sale comprised 3.72 crore shares by the promoter selling shareholder and 9.32 crore share by the investor selling shareholder.
The net proceeds of the fresh issue are proposed to be utilized for augmenting capital base to meet future capital requirements. The net proceeds of the fresh issue are proposed to be deployed in the FY2020. Further, there will be the benefits of listing of the equity shares on the stock exchanges, enhancement of the brand name and creation of a public market for equity shares in India.
The offer comprised of employee reservation portion of up to 18,64,669 equity shares and SBI shareholders reservation portion up to 1,30,52,680 equity shares. A discount of Rs 75 per equity share was offered to eligible employees bidding in the employee reservation portion.
SBI Cards and Payment Services reported net profit of Rs 1161.21 crore and total income of Rs 7240.16 crore in the nine-months ended December 2019.
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