The company has fixed IPO price at Rs 755 per share.
Shares of SBI Cards and Payment Services will debut on the secondary equity market on Monday, 16 March 2020. The company had priced the initial public offer (IPO) at the top end of the Rs 750 to Rs 755 per share price band.
The IPO of SBI Cards and Payment Services ended with robust subscription on 5 March 2020. 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 2 March 2020. It closed for qualified institutional bidders (QIBs) on 4 March 2020 and it closed on 5 March 2020 for all other investors.
The quota reserved for QIBs was subscribed 57.18 times with total bids for 138.52 crore shares as against 2.42 crore shares on offer for them. 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 aggregating up to Rs 500 crore and offer for sale of equity shares 13.05 crore equity shares. 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.
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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