SBI Cards IPO subscribed 4% in first 15 minutes of launch, offer to close on 5 March; sets price band at Rs 750-755

SBI Cards and Payment Services opened its Initial Public Offering (IPO) on Monday at a face value of Rs 10 each for cash at a price band from Rs 750 to Rs 755 per equity share. The offer will close on 5 March.

The SBI Cards IPO was subscribed 4 percent within 15 minutes of its launch, said a report in The Economic Times.

The issue got bids for 1,35,13,028 shares by 12.30 pm compared with the issue size of 10,02,79,411 shares, representing 13 percent of the issue. The company has already raised Rs 2,769 crore from 74 anchor investors, including 12 mutual funds, the report said.

The cards and services arm of State Bank of India (SBI) plans to raise Rs 9,000 crore through the maiden offer.

SBI Cards will offer up to 130,526,798 equity shares through an offer-for-sale route. This will include up to 37,293,371 share sale by SBI and up to 93,233,427 shares on offer by Carlyle Group. In addition, the company will also issue fresh equity shares of Rs 500 crore.

Bids can be made for a minimum of 19 equity shares and in multiples of 19 equity shares thereafter.

The offer includes a reservation of up to 1,864,669 equity shares for subscription by eligible employees and a reservation of up to 13,052,680 equity shares, for subscription by SBI by SBI shareholders. An employee discount of 7 751- per equity share will be offered to eligible employees in accordance with the terms and conditions stipulated in the Red Herring Prospectus.