The company may raise Rs 9,000 crore to Rs 10,000 crore, they added.
The IPO is likely to hit the market towards the end of this month. Earlier, SBI chairman Rajnish Kumar had said the IPO was likely in the current quarter.
According to the DRHP filed last year, the company will offer up to 130,526,798 equity shares via offer for sale route. This will include up to 37,293,371 share sale by SBI and up to 93,233,427 shares by Carlyle Group (CA Rover). In addition, the company will also issue fresh equity shares of Rs 500 crore.
SBI holds 76 per cent in SBI Cards and the rest is held by the Carlyle Group.
Kotak Mahindra Capital, Axis Capital, DSP Merryl Lynch, Nomura Financial Advisory, HSBC Securities and SBI Capital Markets are the book-running lead managers of the issue.
SBI’s plastic cards arm is estimated to have a base of 9.5 million, making it the second-largest card issuer after HDFC Bank, as per an ET report in November. India’s credit card spending grew at an annualised rate of 35.6 per cent in the last three years, while credit card outstanding rose 25.6 per cent, data from RBI show.
The industry average for the cards business stands at 3.5 per cent. SBI Cards has not seen its return on equity (RoE) dip below 25 per cent in the past 6-7 years and has averaged around 30 per cent RoE during that time.
