SBI Cards and Payment Services' initial public offer or IPO opened for subscription on Monday. 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 SBI Cards IPO was last subscribed 31.04 per cent on the first of issue. The IPO received 3.11 crore bids by 3:00 pm compared with the issue size of 10.03 crore, data from the National Stock Exchange (NSE) showed.
Bids under the SBI Cards IPO can be made in lots of 19 shares. At the higher end of price band, one lot will cost an investor Rs 14,345.
(Also Read: SBI Cards IPO Price Band Fixed At Rs 750-755)
Bidding under the SBI Cards and Payment Services IPO will close on March 5.
SBI Cards is the second largest credit card provider in the country with a card base of more than 90 lakh. The company has presence in more than 130 cities in the country, and has a product portfolio that includes premium, classic, travel and shopping, exclusive and corporate cards.
(Also Read: SBI Cards Says IPO To Sail Through Market Turmoil)
Launched by SBI and GE Capital in October 1998, New Delhi-headquartered SBI Cards is 74 per cent owned by State Bank of India and 26 per cent by Carlyle Group. SBI and the Carlyle Group bought the stake of General Electric's lending arm in SBI Cards in December 2017.