The market regulator India Securities and Exchange Commission (SEBI) has reportedly granted major approvals to SBI Cards and Payment Service to float its initial public offering (IPO). SBI Cards launch an IPO in February.

Moneycontrol reports that the credit card unit of the State Bank of India (SBI) is expected to raise Rs 60 crore through a public offering. The report further added that the company will be valued at Rs 55,000-60,000 crore through an IPO.

According to the DRHP submitted to SEBI last November, the SBI Cards IPO will issue 13,05,26,798 shares. These include SBI up to 3,72,93,371 shares and CA Rover Holdings up to 9,32,33,427 shares. The company will also issue new shares worth Rs 5 crore.

Also read:Rajnish Kumar says SBI Card IPO could go public this quarter

SBI holds a 76% stake in its credit card subsidiary, with the rest held by CA Rover Holdings, a subsidiary of Carlyle Asia Partners IV.

Kotak Mahindra Capital Company, SBI Capital Markets, Merrill Lynch, Axis Capital, HSBC Securities and Capital Markets, and Nomura Financial Advisory and Securities are the lead managers of the book.

Earlier this month, SBI Chairman Rajnish Kumar had said that SBI Card's IPO would take place this quarter. SBI cards and payment services follow HDFC cards, with an 18% market share, while HDFC cards have a 27% market share. As of the end of September, the company had 9.4 million outstanding cards. According to the draft prospectus, the company the number of credit cards to grow at a rate of 25% per year.

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Also read:SBI Cards IPO: Five Things About Upcoming Initial Public Offerings

With the listing of the SBI card on the exchange, the company will become the fifth group company listed on the exchange under the SBI Group. An IPO involves an offer to sell the sponsor to sell and newly issued funds to increase the capital base.

As part of the IPO process, its sponsors, Carlyle Group and State Bank of India (SBI), will partially withdraw from SBI cards and payment services. SBI and Carlyle reportedly reduced their stakes by 4% and 10%, respectively, through an offer to sell (OFS) process. The sale is likely to be India's largest private equity deal ever, withdrawing from a public listing in India.

By Rebecca French

Rebecca French writes books about Technology and smartwatches. Her books have received starred reviews in Technology Shout, Publishers Weekly, Library Journal, and Booklist. She is a New York Times and a USA Today Bestseller...