This Article is From Mar 05, 2020

SBI Cards IPO Worth Rs 10,350 Crore Subscribed Over 22 Times

The issue drew bids for over 225 crore shares, compared to the nearly 10.3 crore shares on offer.

SBI Cards IPO Worth Rs 10,350 Crore Subscribed Over 22 Times

SBI Cards IPO got subscribed more than 22 times

SBI Cards and Payment Services' initial public offer (IPO) got oversubscribed 22.45 times on Thursday, the last day of the bidding process, NSE data showed. The credit card arm of the country's top public lender, State Bank of India, drew bids for over 225 crore shares, compared to the nearly 10.3 crore shares on offer, according to the data.

The issue - through which the credit card arm aims to raise around Rs 10,350 crore had begun receiving bids on 2 March, at a time when global financial markets were roiled by fears of the economic impact of the coronavirus that originated in China and is spreading fast outside the country. SBI, which owns 74 per cent in the company, will divest 4 per cent, while Carlyle Group, which holds the rest, is set to sell a 10 per cent stake as part of the IPO process.

The IPO, the first by a credit card issuer and the fifth largest by any company in India, opened at a time when global financial markets were roiled by fears of the economic impact of the coronavirus that originated in China and is spreading fast outside the country.

"This is a segment of the financial market which is showing good growth and has the potential to grow in the next few years given that penetration is still low," Siddhartha Khemka, head of retail research at Motilal Oswal Securities, told news agency Reuters.