SBI Cards IPO subscription day 1: 18 pct till mid-day, shows NSE data

SBI Cards IPO subscribed 18 per cent so far on day one and its bidding will close on March 5; SBI Cards and Payment Services` initial public offering or IPO opened for subscription on Monday and till 1.45 p.m., it was last subscribed 18.38 per cent on the first day of the issue, as per the NSE data

Company has already raised Rs 2,769 crore from 74 anchor investors, including 12 mutual funds. Source:Website

SBI Cards IPO subscribed 18 per cent so far on day one and its bidding will close on March 5. SBI Cards and Payment Services` initial public offering or IPO opened for subscription on Monday and till 1.45 p.m., it was last subscribed 18.38 per cent on the first day of the issue, as per the NSE data.

The company has already raised Rs 2,769 crore from 74 anchor investors, including 12 mutual funds.

The IPO received 1.84 crore bids by 1.45 p.m. compared with the issue size of 10.03 crore, data from the National Stock Exchange (NSE) showed.

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SBI Cards and Payment Services - the credit card arm of the country`s largest lender State Bank of India (SBI) - aims to raise around Rs 10,350 crore through the IPO, including new shares worth Rs 500 crore and an offer for sale of 13.05 crore shares.

SBI Cards is the second largest credit card issuer in the country with a market share of 18 per cent. SBI Cards and Payment Services has fixed a price band of Rs 750-755 per equity share for bidding under the IPO.

The biggest strength of the company is the SBI`s parentage, whose brand is highly trusted. The credit card-to-debit card ratio for SBI Card stands at 3.7 per cent for SBI Card compared with 45 percent of HDFC Bank, 28 per cent for Axis Bank and 18 per cent for ICICI Bank, which suggests scope for SBI Card mining SBI customers.

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The second-largest card issuer SBI Cards & Payment Services, which is hitting the primary market with a Rs 9000-cr IPO, has set the price band for the share sale at Rs 750-755. The IPO, opening on March 2, comprises fresh issue of equity shares aggregating to Rs 500 crore and an offer for sale where promoters will offload nearly 13 crore shares. Promoters SBI and Carlyle Group will offload 3.73 cr shares and 9.32 cr shares respectively.

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