Shares of State Bank of India gained 2 percent in morning trade on February 19 after reports emerged that SBI Cards will launch its IPO in the first week of March.
The stock gained 23 percent in last one year amid NPA resolution, government measures and the value unlocking in SBI Cards. It was quoting at Rs 319.60, up Rs 2.00, or 0.63 percent on the BSE at 09:58 hours.
The Initial Public Offering (IPO) of SBI Cards and Payment Services is expected to be launched between March 2-5, and the total dilution could be around 14 percent through public offer, according to a CNBC-TV18 report.
The business channel also reported that that SBI will dilute 4 percent and Carlyle would dilute its 10 percent stake with the SBI Cards public issue.
The report noted that SBI is likely to raise Rs 2,780-2,880 crore with this IPO.
The offer price for IPO is likely to be fixed between Rs 745-775 per share and with this, SBI Cards is likely to be valued at Rs 69,500-72,000 crore post listing, according to the sources quoted in the report.
SBI Cards intends to use the proceeds of the fresh issue for augmenting its capital base to meet its future capital requirements.
Currently, State Bank of India holds 74 percent stake in SBI Cards and the rest is held by CA Rover Holdings, an affiliate of Carlyle Asia Partners IV.