SBI Cards & Payment Services raise Rs 2,769 Cr ahead of its initial share sale

SBI Cards and Payment Services has raised Rs 2,769 crore ahead of its initial share sale that starts today, on March 2, 2020. The company has raised the sum from 74 anchor investors.

Anchor investors are institutional investors, who are offered shares in an initial public offering, ahead of its opening. Monetary Authority of Singapore, Singapore government, Government Pension Fund Global, HDFC Mutual Fund and Birla Mutual Fund, are among the anchor investors.

Shares have been allotted at the offer's upper price band of Rs 755 apiece, as per a regulatory filing. There are 12 mutual funds among the 74 anchor investors, who have been allocated 3.66 crore shares and its value stood at Rs 2,769 crore.

SBI Cards and Payment Services Opens today

The Initial public offering (IPO) of SBI Cards, the credit card subsidiary of the country's largest lender State Bank of India (SBI), will open for subscription today. The subsidiary of India's largest lender, the State Bank of India (SBI), aims to raise Rs 10,355 crore through this initial public offering (IPO). The IPO will close on March 5. The price range for the IPO has been fixed at Rs 750-755 per share.

Bids can be made for a minimum of 19 equity shares and in multiples of 19 equity shares thereafter. At the upper end of the price range, one lot will cost Rs 14,345. Link Intime India Private Limited is the registrar of the IPO and it will manage the allocation.

The main objective of this IPO is unlocking of the value for existing investors, SBI and Carlyle Group. SBI Cards is 74% owned by SBI while Carlyle Group owns the remaining 26%. SBI will divest 4% of its stake, while Carlyle is set to sell 10% of its stake.

SBI Cards shares will get listed on NSE and BSE. According to brokerages, the listing of shares may happen on March 16, 2020.