SBI Cards Price Band Fixed At Rs 750-755 For Public Offer

The Initial Public Offer (IPO) Committee of SBI Cards has set the price band for its share sale in the range of Rs 750-755 per equity share. In a regulatory filing, State Bank of India late on Monday evening said that a discount of Rs 75 per share will also be offered to the "eligible employees". The shares in the IPO will be available for bidding in lot size of 19 shares and in multiples of 19 thereafter. At the upper band of price band the lot size will cost Rs 14,345. Analysts who track IPO markets suggest that bidding at the upper band of the price range increases chances of allotment in the IPO.

SBI Cards will launch its IPO on March 2 to raise about Rs 9,000 crore. The proceeds will be used by the parent State Bank of India to enhance credit growth.

SBI Card IPO Price Range:

"State Bank of India has been informed by SBI Cards that the IPO Committee of SBI Cards in consultation with the book running lead managers have finalised the price band in range of Rs 750-755 per equity share. An employee discount of Rs 75 per equity share will be offered to eligible employees in accordance with the terms and conditions stipulated in the red herring prospectus dated February 18, 2020," the country's largest lender by assets said in an exchange filing on Monday.

The IPO Committee has finalised the bid lot for the offer at 19 equity shares and in multiples of 19 equity shares thereafter.

The IPO comprises a fresh equity issue worth Rs 500 crore and an offer for sale of up to 130,526,798 equity shares. This will include up to 37,293,371 share sale by SBI and up to 93,233,427 shares on offer by Carlyle Group, the company said in its prospectus.

The bidding process for the SBI Cards IPO will close on March 5.

SBI Cards is second-largest credit card issuer in India, with an 18 per cent market share.