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SBI Cards files for IPO
Posted on Thursday, 28 November 2019 08:21
India’s SBI Cards & Payment Services has filed a draft prospectus for an initial public offering (IPO) with the Securities and Exchange Board of India to raise INR 96.00 billion (USD 1.35 billion).

The deal is expected to comprise 130.53 million shares, 37.39 million of which will be offered by the State Bank of India (SBI) and 93.23 million are being sold by Carlyle Group’s CA Rover Holdings subsidiary, in addition to new stocks worth INR 5.00 billion.

SBI Cards was founded as a joint venture between SBI and Carlyle, with the former owning 74.0 per cent of the business and the latter controlling the remaining 26.0 per cent stake.

The lender has committed to divesting 4.0 per cent of its interest as part of the stock market flotation, while the private equity firm is said to be selling 10.0 per cent of its shares.

SBI Cards is valued at INR 570.00 billion, according to a report by Times Now News, which is more than 7.0x the INR 80.00 billion value when Carlyle bought a 26.0 per cent stake for USD 250.00 million from GE Capital in 2017.

One of two sources cited by Livemint suggested the pre-money market capitalisation is around INR 650.00 billion and the group will be listed in the next three to four months.

SBI Cards is billed as the second-largest credit card issuer in the country, with 9.46 million cards in the market and an 18.0 per cent share of the sector as of 30th September 2019.

Zephyr, the M&A database published by Bureau van Dijk, shows that based on current conversion rates, this deal will be the eighth-largest IPO of an Indian-based company on record and the biggest to be announced since the start of 2019.

Other large stock market flotations signed off over the last 19 years include Coal India, Reliance Power, DLF, Reliance Petroleum and General Insurance Corporation of India.

© Zephus Ltd