SBI Cards share rises over 2% on plan to raise Rs 2,000 crore via debt

Share price of SBI Cards and Payments Services gained over 2% in early trade after the firm said it plans to raise up to Rs 2,000 crore through the issuance of debt securities in one or more tranches. The company's board will take a final call on the proposal in its meeting on March 12.

SBI Cards share touched an intraday high of Rs 1,090, rising 2.2% against previous close of Rs 1066.55 on BSE. The stock has risen 1.2% in the last 2 days. The large cap share trades higher than 20 day, 50 day, 100 day and 200 day moving averages but lower than 5 day moving averages.

The stock has gained 24.34% since the beginning of this year. Market cap of the firm stood at Rs 99,733 crore. The share opened at Rs 1,084 today.

A meeting of the board of directors of the company is scheduled to be held on Friday (March 12) to consider and approve raising of funds by way of issuance of non-convertible debentures, aggregating to Rs 2,000 crore, SBI Cards said in a regulatory filing.

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The funds will be raised in one or more tranches over a period of time, it said.

This will be the second instance of fund-raising via NCDs within a month. On February 23, the firm said it had raised Rs 550 crore by issuing bonds on a private placement basis. The bonds bear coupon rate of 5.9% per annum, SBI Cards said.

The bonds will be listed on the Wholesale Debt Market Segment of BSE, the company said. The tenure of the debt instruments is three years with the date of maturity as 23 February, 2024.