SBI Cards and Payment Services (SBI Cards), a subsidiary of the State Bank of India, has filed for an initial public offering (IPO) to raise up to INR95bn ($1.32bn).
The proposed IPO is said to be one of the biggest listings in the country which will give SBI Card an enterprise valuation of INR600bn ($8.37bn), reported The Hindu BusinessLine.
A draft red herring prospectus (DRHP) by SBI Cards has been filed with the capital market regulator Securities and Exchange Board of India (SEBI) recently.
The IPO will include a fresh issue of equity shares totaling INR5bn ($69.8m) and an offer-for-sale of 37.2 million equity shares by SBI and 93.2 million equity shares by investor CA Rover.
In a stock exchange filing on 14 November, SBI said that the Executive Committee of its Central Board of Directors has given final approval to offload of up to 4% of the bank’s stake, equating 3,72,93,371 shares, in SBI Cards through an IPO, by an offer for sale.
As per the draft red herring prospectus, SBI Card will offer up to 13 million equity shares to shareholders while the staff’s portion of reserved shares would be 1.864 million.
At present, the State Bank of India owns a 74% stake in the SBI Card. US private equity firm Carlyle holds the remaining 26%, which it acquired in 2017.