SBI Cards and Payment Services IPO has entered second day of subscription today. The price band for the initial public offering (IPO) which will close on March 5 has been fixed at Rs 750 to Rs 755 per share. SBI's credit card arm aims to garner Rs 10,355 crore by selling 13.71 crore shares of face value Rs 10 each.
Shares will be offered in a lot of 19 shares and in multiples of 19 amounting to value of Rs 14,345 (at the upper end of price band). One can apply for a maximum 247 shares (13 times of a lot size), totalling to Rs 186,485.
SBI shareholders: Under the IPO, 130.53 lakh equity shares have been reserved for SBI shareholders. Individual shareholders of SBI can apply under the retail (investment up to Rs 2 lakh) as well as shareholder category (investment up to Rs 2 lakh). If an SBI shareholder is also an SBI employee, he or she is also eligible to apply in the category of employees (investment up to Rs 5 lakh).
SBI employees: Eligible employees will be offered SBI Cards shares at a discount of Rs 75 per share, taking the price band to Rs 675-680. The reserved portion for subscription by employees comes to 18.64 lakh equity shares. The maximum limit defined to apply in the employee category is Rs 5 lakh. The maximum allotment to employees cannot be above Rs 2 lakhs when the category is fully or oversubscribed.
Qualified Institutional Buyers (QIBs): SBI Cards has reserved 2,44,46,393 shares for this category and expects to raise Rs 1,845.70 crore. QIBs can also participate in the IPO process through an anchor investor's category.
Non-Institutional Investors (NIIs): For this category, the company has set aside 1,83,34,795 shares, which if fully subscribed will raise up to Rs 1,384.28 crore.
Retail investors: Under this category, the company has reserved 4,27,81,188 shares for individual investors who wish to subscribe to the issue, in order to raise up to Rs 3,229.98 crore. As many as 22,51,641 lots are up for grabs in this category. As per regulations, a retail investor can apply for a maximum of 14 lots as the upper limit of the investment is capped at Rs 2 lakh.
Anchor investors: Anchor investors are institutional investors who are offered shares in an initial public offering (IPO) ahead of its opening. Qualified institutional buyers can also participate in the IPO process under this category. The company has raised Rs 2,769 crore from 74 anchor investors. Singapore government, Monetary Authority of Singapore, HDFC Mutual Fund, Government Pension Fund Global and Birla Mutual Fund, are among the key investors in the anchor issue. Among 74 anchor investors, there are 12 mutual funds who have been allocated 3,66,69,589 shares of SBI Cards.
SBI Cards plans to issue fresh shares worth Rs 500 crore (0.66 crore shares) and offer up to 13.05 crore shares (Rs 9,855 crore) for sale by promoters. SBI Cards and Payment Services is backed by State Bank of India and private equity firm Carlyle Group. Both parties will make partial exits from the firm. SBI Cards plans to raise Rs 500 crore by selling 0.66 crore shares. Carlyle Group will offer up to 13.05 crore shares to raise Rs 9,855 crore.