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SBI Cards IPO Subscribed 35 Per Cent On Day 1, Retail Segment Already Subscribed By 56 Per Cent
Indian Banks - SBI and Federal Bank - Representative Image (Sanchit Khanna/Hindustan Times via Getty Images)
The Rs 10,355 crore SBI Cards’ Initial Public Offering (IPO) has been subscribed 35.35 per cent on the first day. The IPO which hit the market today (2 March) received bids for 3.5 crore shares out of a total of around 13 crore shares including the portion reserved for anchor investors.
The retail portion of the IPO has been subscribed 56 per cent and the portions allotted for employees and SBI shareholders has been subscribed by 80.14 and 62.59 per cent respectively on the first day.
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 and a total of 19 shares will be allotted in one lot.
The biggest strength of the company is the SBI's parentage, whose brand is highly trusted. The credit card-to-debit card ratio for SBI Card stands at 3.7 per cent for SBI Card compared with 45 per cent of HDFC Bank, 28 per cent for Axis Bank and 18 per cent for ICICI Bank, which suggests scope for SBI Card mining SBI customers.
With Inputs From IANS
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