The SBI Cards IPO will open for subscription starting March 2

NEW DELHI: The initial public offering (IPO) and payment services (SBI cards) will open for subscription on Monday. The company expects to raise around Rs 9,000 crore through the IPO.

The IPO will remain open until March 5. Generally, an IPO is open for subscription for a minimum period of 3 business days and a maximum period of 10 business days under certain circumstances. However, it will be open for a period of four business days.

The company has set a price band of Rs 750-755 per share with a minimum bid size of 19 shares.

The list includes a new issuance of capital shares worth Rs 500 million along with an offer to sell 13 capital shares.

The issuance will have a reserve of Rs 1.3 million for SBI shareholders and 18.6 lakh shares for employees. Eligible employees are entitled to a discount of Rs 75 per share.

For (QIBs), the subscription will close on March 4 while the problem closes on March 5, SBI Cards and Payment Services CEO and Hardayal Prasad said Friday.

Before its OPI opening, the company has raised Rs 2,769 crore from 74 anchor investors, institutional investors who are offered shares in an IPO before opening. The shares have been assigned to the upper price band of the offer of Rs 755 each, according to a regulatory presentation.

SBI owns 76 percent in SBI cards and the rest of the participation is held by Carlyle Group .

SBI Cards is the second largest credit card issuer in India with an 18 percent market share, Prasad said.

The IPO is coming to the market at a time when investor sentiment is shaken by growing concerns about the coronavirus. The Sensex market benchmark plummeted 1,448 points on Friday after a worldwide mass sale as market participants worried about the impact of the rapidly spreading coronavirus.