INSUBCONTINENT EXCLUSIVE:
The Rs 9,000-crore IPO is India's fifth largest and first from a pure-play credit card companyNew Delhi: The upcoming mega IPO of SBI Cards
and Payments will sail through the current stock market bloodbath, the company management said on Friday, while relying on the response
received from the anchor investors to the IPO.Hardayal Prasad, MD and CEO of SBI Cards, said that for qualified institutional buyers (QIBs),
the subscription will close on March 4, while the issue closes on March 5
added.But the continued erosion of stocks, leading to Friday's meltdown, has in some way added to the possibility of a downturn over the
much-awaited initial public offering of SBI Cards and Payment Services (SBI Card).The IPO, India's fifth largest, and the first from a pure
play credit card company is set to open for subscription Monday to Thursday.The initial public offering (IPO) of SBI Cards and Payment
Services Ltd, the credit card unit of India's largest lender State Bank of India (SBI), will open for subscription on March 2.The price band
of Rs 9,000-crore IPO has been set at Rs 750-Rs 755 per equity share.Viren Jairath, vice president, Kotak Investment Banking, said that the
anchor book is already open today and "we are seeing pretty good response there"."We hope retail subscription would also follow the same
pattern which it normally does
The market is a little bit on a downward trajectory which is more on macro environment such as coronavirus
Our roadshows were completed in January and we have seen very strong response from both QIBs and HNIs (high networth individuals) we have
On that basis we decided to go ahead with the IPO
We believe it is going to be a pretty overwhelming response," he said.SBI Cards is 74 per cent owned by the SBI, while Carlyle Group owns
the remaining 26 per cent
Carlyle bought the stake in 2017 from GE.As part of the IPO, SBI will divest 4 per cent of its stake, while Carlyle will sell 10% of its
stake.Hardayal said SBI Card's NPA is at 2.47 per cent
SBI Cards IPO comprises issue of fresh equity shares aggregating to Rs 500 crore and an offer for sale of nearly 13 crore shares.SBI and
Carlyle Group will offload 3.73 crore shares and 9.32 crore shares respectively.
