SBI Cards and Payment Services' initial public offer (IPO), which opened for subscription on Monday, was subscribed 87 per cent on the second day of bidding, data from National Stock Exchange showed. A total of 8.75 crore bids were received at 6 pm on Tuesday, for the SBI Cards shares for 10.02 crore shares on the offer. Total bids received at the cut off price of Rs 755 were 2.75 crore. 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, bidding for which will close on March 5.
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.
SBI Cards had raised Rs 2,769 crore from 74 anchor investors, including the Singapore government, the Monetary Authority of Singapore, HDFC Mutual Fund, Government Pension Fund Global and Birla Mutual Fund.
Angel Broking has said it is "positive on the future outlook of the company given the favourable industry scenario, large untapped SBI Bank customers and strong financial track record" although the valuations are a bit on the higher side.
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.
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.
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