Paper deposits with SEBI, IPO of SBI card will come soon, big earning opportunity!

New Delhi, Nov 29(HS): SBI card of State Bank of India has accelerated the process of launching IPO. After the IPO, general investors will also be able to buy shares of SBI card. The company has submitted documents with the Capital Market Regulator (SEBI) to present the IPO.

Actually SBI Cards and Payment Services Limited is preparing to raise Rs 9600 crore through this IPO. It will be the fifth-largest IPO in the country after Coal India Limited, Reliance Power Limited, GIC Re and ONGC. This will help SBI to raise funds to promote credit growth.

According to the draft red herring prospectus (DRHP), the company is going to offer 13,05,26,798 shares for sale through the offer for sale (OFS) in this issue. Of this, 3,72,93,371 shares will be offered by the State Bank of India and Carlyle Group for sale 9,32,33,427 shares. The company will also issue fresh shares worth Rs 500 crore.

For this issue 18,64,669 shares have been reserved for the employees of the company. While 1,30,52,680 shares will be reserved for the shareholders of State Bank of India. SBI Cards and Payment Services Limited is a credit card unit of SBI.

SBI has a 74 percent stake in SBI Card. The remaining 26 percent is held by the American equity firm Carlyle Group. The two companies together will sell 130.5 million shares through an IPO.SBI has a 74 percent stake in SBI Card. The remaining 26 percent is held by the American equity firm Carlyle Group. The two companies together will sell 130.5 million shares through an IPO.