New Delhi: The initial public offering (IPO) of SBI cards and payment services will open on March 2 with a price band of Rs 750-755 per equity share. The offer, which comprises a fresh issue worth Rs 700 crore, also has an offer for sale (OFS) of up to 13,05,26,798 equity shares. 19 equity shares have been finalised as the bid lot for the offer, and, from then on, in multiples of 19 equity shares. Also Read - State Bank of India Customer Alert! SBI Card Finalises IPO Price Band at Rs 750-755 Per Share

Here’s what all you need to know about it: Also Read - SBI Cuts MCLR by 5 Basic Points Making Home, Car Loans Cheaper; FDs to Fetch Lower Returns From Feb 10

(1.) Existing shareholders of SBI: For the existing shareholders of SBI, 1, 30,52,680 equity shares or 9.5% of the issue has been reserved. What this means, simply, is that investors who have SBI shares in their portfolio as on February 18, 2020, can apply for IPO under this category. Also, there is no binding limit on the number of shares an investor can hold. Thus, even those with just one share of the promoter company can apply for the issue under this category. Also Read - SBI Bank Customers Alert! State Bank of India May Freeze Your Account After Feb 28, Here's Why

(2.) Retail QuotaThose who do not have shares in SBI portfolio and have missed buying ahead of the cut-off date, can apply under the ‘Retail category.’ Around 35% of the issue has been reserved for small/retail investors. Anyone with an investment limit of up to Rs two lakh can apply under this category. Those with SBI shares, meanwhile, can apply at above Rs two lakh and maximum up to reserved portion for the shareholder’s category.

(3.) Employee quotaAn SBI shareholder, who is also employed with the bank, is eligible to apply in all the three categories depending upon the investable surplus-retail individual investor (RII; up to Rs two lakh), SBI shareholder (up to Rs two lakh) and employee quota (up to Rs five lakh). SBI employees will also be offered a discount of Rs 75. Also, 50% of the issue has been reserved for Qualified Institutional Buyers (QIB) and 15% for Non-Institutional Bidders (NIP).

Also, unlike other IPOs, which are open for subscription for three days, SBI Cards IPO will run for four days. While the first three days-between March 1-4-will be open for all bidders, the fifth day, i.e March 5, will be for retail investors only. For the QIBs, meanwhile, the offer will close on March 5.