SBI Card & Payments Services Ltd, the credit card subsidiary of State Bank of India (SBI), plans to raise about 80 billion Indian rupees ($1.12 billion) via an initial public offering this year, a senior SBI executive involved in the process said.
In the last quarter of the financial year, SBI has already tapped banks run IPO process and a listing is expected in this quarter, said, bank officials.
SBI Card, which is 74 per cent owned by SBI and 26 per cent by US private equity firm Carlyle Group, had total assets worth 195.93 billion rupees, at the end of March 31, 2019.
As per the records of the Indian market of credit card is still compared to its debit card market. Recently regulatory data shows, there were 49.6 million credit cards in circulation in the country as compared to with 836 million debit cards.
The IPO will also comprise an offer for sale of up to 130.5 million shares, representing a 14% stake, owned by existing shareholders. However, the firm did not disclose the quantum of shareholding SBI and Carlyle will individually sell.
The total IPO size is expected to be Rs 3,000-4,000 crore, valuing the firm at $2-2.5 billion, said a person on condition of anonymity.