November 28, 2019 / 3:20 AM / 17 days ago

RPT-SBI's credit card business plans IPO to raise nearly $1.25 billion

(Repeats with no changes to text)

MUMBAI, Nov 27 (Reuters) - SBI Cards and Payment Services Ltd, the credit card subsidiary of State Bank of India (SBI) , India’s largest lender, filed plans for an initial public offering (IPO) with the markets regulator and stock exchanges on Wednesday.

The company plans to issue new shares worth 5 billion rupees and will offer up to 130.5 million shares for sale, according to the draft prospectus published by the lead managers of the deal.

The prospectus does not disclose the size of the IPO which is estimated to be between 80 billion rupees ($1.1 billion) and 90 billion rupees ($1.2 billion), according to local media reports, which would make it one of the biggest ever in India.

SBI Card, which is 74% owned by SBI and 26% by U.S private equity firm Carlyle Group, had total assets worth 196 billion rupees at the end of March 2019.

It is the second-largest credit card issuer in the country, with 9.4 million outstanding cards as of the end of September.

Kotak Mahindra Capital Company, Axis Capital, Bofa Securities, HSBC, Nomura and SBI Capital Markets are lead managers for the IPO, according to the draft prospectus.

The lender has already listed its life insurance business and has been looking at selling its investment in non-core assets to raise capital. (Reporting by Nupur Anand and Chris Thomas; Editing by Elaine Hardcastle)

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