Business

SBI Cards IPO subscribed 0.39 times on day one

Retail portion subscribed 0.62 times

The initial public offer of SBI Cards and Payment Services, which opened for bidding on Monday, was subscribed 0.39 times with bids received for nearly 3.5 crore equity shares as against 10.03 crore shares on offer in the price band of ₹750 to ₹755.

As per NSE website, the portion reserved for retail investors was subscribed 0.62 times while that for employees was subscribed 0.80 times.

Further, the segment reserved for high networth individuals was subscribed 0.22 times on the first day.

The public offering with a size of over ₹10,000 crore would see existing shareholders State Bank of India (SBI) and private equity major Carlyle diluting their stakes in the company.

SBI to offload 4%

SBI, which has a stake of 74% in the card company, would be offloading 4% stake by way of the offer, while private equity major Carlyle will be diluting its stake by 10% (it currently holds 26% stake).

SBI Cards is the second-largest credit card issuer in the country with a market share of 18% on the back of almost 10 million cards.

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Printable version | Mar 30, 2020 8:03:00 PM | https://www.thehindu.com/business/sbi-cards-ipo-subscribed-039-times-on-day-one/article30965684.ece

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