SBI Cards and Payments Services Ltd, the credit card subsidiary of State Bank of India, has filed draft red herring prospectus for its initial public offer (IPO) with market regulator Securities and Exchange Board of India (SEBI). The company plans to raise around Rs 9,600 crore through the public issue.
The company plans to offer up to 13 crore equity shares via offer for sale route, which will include up to 3.7 crore share sale by SBI and up to 9.3 crore shares on offer by Carlyle Group (CA Rover). Additionally, the company plans on issuing fresh equity shares worth Rs 500 crore.
Up to 0.1 crore shares have been reserved for employees of the company whereas 1.3 crore have been reserved for SBI shareholders.
Where SBI holds 76% in SBI Cards and rest of the stake is held by Carlyle Group.
SBI Cards is the second-largest credit card issuer in India with an 18% market share.
For the half year ended September 30, the company's net income was Rs 725.88 crore. Its revenue was at Rs 4,677.20 crore.
Kotak Mahindra Capital, Axis Capital, DSP Merryl Lynch, Nomura Financial Advisory, HSBC Securities and SBI Capital Markets will are the book-running lead managers of the issue.
(with PTI inputs)