InvestorQ : When is the SBI Cards IPO slated to open and do you suggest that I should apply to the IPO for listing gains?
Crowny Pinto made post

When is the SBI Cards IPO slated to open and do you suggest that I should apply to the IPO for listing gains?

Answer
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7 months ago


While there is no official confirmation of the dates, media houses have reported that SBI will be filing the final Red Herring prospectus with SEBI on 18 February and the issue could open on Marcy 02, 2020.

SBI Cards is the division of SBI that handles its credit cards business and its payment services. The issue is expected to be open from March 02 to March 05 for public subscription. The issue floor prices is expected to tentatively be around Rs.775 and SBI will dilute 4% of its stake at a valuation of around Rs.2880 crore.

This will give an overall valuation to SBI Cards of about Rs.69,000 crore when it is lasted. Apart from SBI divesting 4% of its capital, the foreign partner Carlyle will divest around 10% of its stake. In all 14% of the stake will be diluted and that will take the issue size to approximately Rs.10,000 crore at the current pricing.

SBI has been one of the consistent players in the credit cards business and this will be the first opportunity for shareholders to participate in a credit card listed franchise. It is a good issue to bite into but ideally you must look at a long term holding than just at listing gains.