The week has started with a lot of buzz in the primary stock markets. After investors made some jaw-dropping returns in recent months through IPOs (initial public offers) of IRCTC, CSB Bank and Ujjivan Small Finance Bank, market interest in the upcoming issues is at an all-time high. Here’s a look at three such IPOs that were making headlines today:
SBI Cards IPO
State Bank of India’s (SBI’s) credit card unit, SBI Cards and Payment Services Ltd, has received approval from market regulator Securities and Exchange Board of India (Sebi) for its proposed IPO. According to a report in Livemint, the company is in the process of finalising the timeline for the IPO in the next two days and plans to launch the issue by early March. SBI Cards may raise up to Rs 9,000 crore through the issue, the report said.
As per the draft papers, SBI Cards will offer up to 130,526,798 equity shares through offer for sale (OFS) route. This will include sale of up to 37,293,371 shares by SBI and of up to 93,233,427 shares by Carlyle Group. In addition, the company will also issue fresh equity shares of Rs 500 crore.
SBI holds 76% in SBI Cards and rest of the stake is held by Carlyle Group. SBI Cards is the second-largest credit card issuer in India with an 18% market share.
The Insurance Regulatory and Development Authority of India (Irdai) on Tuesday said that the insurance watchdog is yet to get any proposal from the Life Insurance Corporation of India (LIC) on its IPO that was announced in Union Budget 2020. IRDAI chairman SC Khuntia said: “LIC proposal has not yet come,” but added that the IPO will help improve corporate governance and disclosures.
On being asked whether LIC’s business will need any restructuring before the IPO, Khuntia said that work on the same is being carried out by the government.
He added that listing is a good idea for insurance companies and Irdai will nudge entities to go for the same.
Barbeque Nation IPO
Bengaluru-based Barbeque Nation Hospitality Ltd on Tuesday filed the draft red herring prospectus (DRHP) with Sebi for its IPO that will help it raise Rs 1,000-1,200 crore.
The issue comprises a fresh issue of shares worth Rs 275 crore and an OFS of up to 98,22,947 equity shares. Barbeque Nation may also consider a pre-IPO placement not exceeding Rs 150 crore, the company said.
Barbeque Nation currently operates 138 outlets across 78 cities in 24 states in the country and 7 international outlets in the UAE, Oman and Malaysia.