State Bank of India-owned SBI Cards and Payment Services (SBI Cards) 10,000-crore initial public offering (IPO) opened for subscription today. The issue will close for subscription on 5 March. The price range for the IPO has been fixed at 750-755 per share. SBI holds 76% in SBI Cards and the 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. SBI Cards was launched in October 1998 by SBI and GE Capital.

A look at the detailed criteria for SBI employees and shareholders for the IPO:

1) All eligible SBI employees are allowed discount of 75 per share. This means the price band for them will be at 675-680.

2) Bids can be made for a minimum of 19 equity shares and in multiples of 19 equity shares thereafter. So minimum amount (at cap price of 755 minus discount of 75 per share) will be 12,920.

3) SBI employees can make bids for a maximum of 722 equity shares. So maximum amount (At cap price of 755 minus discount of 75 per share) will be 4,90,960.

4) Retail investors who also hold State Bank of India (SBI) shares can apply for shares reserved for this category. They are eligible even if they own just one share of the bank.

5) The initial allotment to an eligible SBI shareholder shall not exceed 2,00,000. The maximum bid amount under the Employee Reservation portion by an eligible SBI employee shall not exceed 5,00,000

SBI employees can apply through Applications from OD accounts are not allowed. The employees should apply through savings bank account only.

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