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  1. SBI Cards to raise ₹5,000 crore via NCDs, stock rise up to 2%; check details

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SBI Cards to raise ₹5,000 crore via NCDs, stock rise up to 2%; check details

Upstox

2 min read | Updated on September 13, 2024, 14:18 IST

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SUMMARY

The company's board of directors has scheduled a meeting on Wednesday, September 18, to consider a proposal to raise up to ₹5,000 crore via NCDs on a private placement basis. The funds will be raised in one or more tranches over a specified period.

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SBI Cards gains nearly 2% ahead of board meeting to consider fundraising

SBI Cards gains nearly 2% ahead of board meeting to consider fundraising

SBI Cards and Payment Services Limited shares rallied nearly 2% to hit an intraday high of ₹817.4 apiece on the NSE after the company announced plans to raise ₹5,000 crore via Non-Convertible Debentures (NCDs).

In a filing to the stock exchanges on Thursday, the credit card issuer said that a meeting of its board of directors has been scheduled on Wednesday, September 18, to consider a proposal to raise up to ₹5,000 crore via NCDs on a private placement basis.

The company informed the bourse that the funds would be raised in one or more tranches over a specified period.

Last month, the company said that the nomination and remuneration committee of the board, through its resolution dated August 23, 2024, has approved the allotment of 95,240 equity shares of ₹10 each to eligible participants of the company.

This allotment has been made pursuant to the exercise of options under the SBI Card - Employee Stock Option Plan 2019 (ESOP Scheme 2019) at an exercise price of ₹152.1 per share.

As a result of this allotment, the company's paid-up capital has increased from ₹9,51,08,10,340, comprising 95,10,81,034 equity shares of ₹10 each, to ₹9,51,17,62,740, comprising 95,11,76,274 equity shares of ₹10 each.

SBI Cards reported a flat net profit of ₹594 crore in Q1FY25, compared to ₹593 crore in the same period a year ago. Sequentially, the net profit dropped by 10.27% from ₹662 crore compared to the last quarter of FY24.

The company's revenue from operations rose 11.42% to ₹4,359 crore in the June quarter, as against ₹3,912 crore in the corresponding period of the previous fiscal year. However, on a quarter-on-quarter basis, the revenue from operations remained flat compared to ₹4,348 crore in Q4FY24.

The number of active cards grew by 11% year-on-year reaching 1.92 crore in Q1FY25, up from 1.73 crore in Q1FY24. However, the number of new accounts opened during the quarter decreased, with 9,04,000 new accounts in Q1FY25 compared to 1,097,000 new accounts in Q1FY24.

SBI Cards and Payment Services shares were trading 0.74% higher at ₹808.2 apiece on the NSE at 2:00 pm.

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