State Bank of India rose 1.27% to Rs 327 after the bank said that the price band of initial public offering (IPO) of SBI Cards and Payment Services has been fixed at Rs 750-755 per share.
The IPO will open for subscription on 2 March and close on 5 March. As part of the IPO process, Carlyle Group, and SBI will make partial exit from SBI Cards and Payment Services. SBI has 74% stake in its credit card unit. Carlyle Group, which holds 26% through its subsidiary CA Rover Holdings, will jointly sell 13.05 crore shares. SBI and Carlyle will pare their stakes by 4% and 10% respectively. The IPO comprises a fresh issue of Rs 500 crore.SBI Card is a leading issuer of credit cards in India. With a customer base of over 9 million, SBI Card operates through a footprint of more than 130 cities in India. SBI Card is the second largest credit card issuer in India, at present.
State Bank of India reported a 41.18% jump in standalone net profit to Rs 5583.36 crore in Q3 December 2019 over Q3 December 2018. Total income rose 9.22% to Rs Rs 76797.91 crore in Q3 December 2019 over Q3 December 2018.
Government of India holds 57.68% stake in State Bank of India as on 31 December 2019.
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