SBI share price rises 2% as credit card unit's IPO set for early March launch

SBI share price rose in early trade today amid reports that the initial public offer (IPO) of its credit card unit SBI Cards and Payment Services is likely to be launched in the first week of March.  Share price of SBI rose 2% to Rs 323.95 compared to the previous close of Rs 317.60 on BSE. SBI stock price opened higher at Rs 321.70. 11.71 lakh shares changed hands amounting to turnover of Rs 37.58 crore.

The large cap stock has gained 21% since the beginning of this year.

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SBI Cards and Payment Services plans to open its anchor book for institutional investors around February end, according to media reports.  Market regulator Securities and Exchange Board of India (SEBI) granted in-principal approval to the IPO of SBI Cards and Payment Services last week.

SBI Cards and Payment Services is backed by State Bank of India and private equity firm Carlyle Group. As part of the IPO process, Carlyle Group, and State Bank of India (SBI) will make partial exit from the firm.

SBI owns 76% in its credit card unit. Carlyle Group, which holds 26% through its subsidiary CA Rover Holdings, will jointly sell 130.5 million shares. SBI and Carlyle will pare their stakes by 4% and 10% respectively. The credit card unit of the country's largest lender plans to raise Rs 9,600 crore through the IPO.

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By Aseem Thapliyal