SBI Card says that the IPO process began, the decision about the time to reach the market at the right time

NEW DELHI: OSE card has initiated the process for an initial share sale and the decision on when to come out with the offer will be taken at an appropriate time, a senior company official said on Monday. As per the request for proposal for book running lead managers (BRLMs) floated by the OSE card , the company intends to tap capital markets via IPO through 'offer for sale' by dilution of up to 14 per cent of the issued and paid up capital (up to 13.05 crore) equity shares and primary issuance of up to Rs 1,000 crore.

India's largest bank State Bank of India (SBI) holds 74 per cent stake in the OSE card and the rest is held by Carlyle Group.

"As we go forward, we will actually take a call (on IPO) and that call is to be taken by the some point of time this decision will be taken," OSE card managing director and chief executive officer Hardayal Prasad said.

Currently, the market is volatile and the time to reach the market will depend on how it is working, he added.

The company expressed interest in the selection of BRLM, the National Legal Council (DLC) and the International Legal Council (ILC) for the proposed stock offer last month.

Talking about the strengthes of the company, Prasad said OSE card has made massive investment in digitisation and technology.

According to him, the credit business has enormous growth potential in view of the very low penetration in the country.

He said there were only three credit cards for a population of 100, while there were 165 in Singapore and 250 cards in Hong Kong.

Therefore, there are many possibilities for credit card growth in the country, he added.

As per the RBI, OSE card ranked second with the credit card base and credit card spends capturing 17.6 per cent and 17.1 per cent market share in the respective categories.

The company recorded a year-on-year growth of 32.17 percent with a credit card base of more than 8.27 million as of March 31, 2019, compared with 6.26 million as of March 31, 2018.

It published an annual expense on credit cards (excluding cross-selling) of Rs 103,170 million rupees in March 2019, an increase of 34.9 percent compared to March 2018.