Securities and Exchange Board of India (SEBI), the market regulator of securities in the country, has granted in-principal approval to SBI Cards and Payment Service, the credit cards subsidiary of State Bank of India, to launch an IPO.
SBI has plans to open its anchor book for institutional investors by this month end.
Launch of the IPO is expected in the beginning of March, reported Business Today.
In December 2019, SBI chairman Rajnish Kumar had said that the SBI Cards IPO would be launched in the coming months, reported Financial Express.
Currently SBI holds 76% stake and remaining 26% is owned by CA Rover Holdings, which is the subsidiary of Carlyle Group.
The IPO process will require SBI and investor CV Rover, a subsidiary of US private equity firm Carlyle Group, to make partial exit from SBI Cards.
Both the companies will jointly sell 130.5 million shares and pare their stakes by 4% and 10% respectively.
In addition, SBI will issue a fresh equity share of INR5bn ($69.8m).