New Delhi: The Securities and Exchange Board of India (SEBI) approved the initial public offering (IPO) of SBI Cards and Payment Services, a subsidiary of the country’s largest lender State Bank of India.
The Rs 9,500-crore initial public offering of SBI Cards and Payments Service is likely to be launched in the first week of March, according to bankers to the issue.
The IPO is likely to be priced in a band of Rs 690-700 per share, the bankers said. In the unofficial grey market, SBI shares are being traded at Rs 950-970 per share, about 38 per cent over its likely IPO price. SBI Cards is likely to be valued at Rs 60,000 crore in the IPO, implying valuations 41 times FY20 annualised earnings per share as against 9-18 times of global peers.
The company will offer up to 13.05 crore equity shares via the offer for sale route, according to the draft red herring prospectors (DRHP).