SBI Cards and Payment Services IPO
SBI Cards IPO Analysis, IPO Review, Dates, Price Bands, Market Lot, SBI Cards and Payment Services Ltd IPO Grey Market Price Details
The second-largest issuer of credit cards in India is going public.
SBI Cards and Payment Services was promoted by State Bank of India on May 15, 1998 to issue credit cards and deal in payment products. Apart from an issue of fresh shares in the IPO, SBI will be selling a part of its promoter holdings. The Carlyle Group, which had taken up a stake in SBI Cards in December 2017, will also be offering a part of its stake in the issue.
SBI Cards & Payments Services Ltd. which was previously known as SBI Cards and Payment Services Private Limited. The company is coming up with his initial public offering soon. SBI Cards and Payment Services Limited is one of the largest credit card issuer in India. It is not starting the SBI card pay a payment feature based on HCE Technology (Host Card Emulation).
They are the second-largest credit card issuer in India, with a 17.6% and 18.0% market share of the Indian credit card market in terms of the number of credit cards outstanding as of March 31, 2019 and September 30, 2019, respectively.
SBI Cards IPO Details:
| Open Date: | Mar 2, 2020 |
| Close Date: | Mar 5, 2020 |
| Total Shares: | 13,71,49,315 Shares |
| Face Value: | ₹ 10 Per Equity Share |
| Issue Type: | 100% Book Building |
| Issue Size: | 10351.98 Cr. |
| Lot Size: | 19 Shares |
| Issue Price: | ₹750 – ₹755 / Equity Share |
| Listing At: | NSE, BSE |
| Listing Date: | Mar 16, 2020 |
| Upcoming IPO 2020 | Upcoming NCD 2020 |
Overview of SBI Cards and Payment Services Limited
The subsidiary of State Bank of India (SBI), SBI Cards and Payment Services Limited is the 2nd largest credit card issuer in India. The company covers the “premium” cardholder category to the “affluent”, “mass affluent”, “mass” and “new to credit” categories.
The company offers an extensive credit card portfolio to individual cardholders and corporate clients which includes lifestyle, rewards, travel and fuel, shopping, banking partnership cards and corporate cards covering all major cardholder segments in terms of income profiles and lifestyles.
The credit card portfolio of the company includes SBI Card-branded credit cards as well as co-branded credit cards that bear both the SBI Card brand and co-brand partners’ brands.
The company offers four primary SBI Card – branded credit cards: SimplySave, SimplyClick, Prime and Elite. For co-brand credit cards, the company has a partnership with travel, fuel, fashion, healthcare and mobility industries like Air India, Apollo Hospitals, BPCL, Etihad Guest, Fbb, IRCTC, OLA Money and Yatra, among others.
The company offers credit cards in partnership with the Visa, MasterCard, and RuPay payment networks.
The company’s total income increased at a CAGR of 44.9% and the revenues from operations have increased at a CAGR of 44.6% from 2017 to 2019. The net profit increased by a CAGR of 52.1% during this period.
The company has a sales force of 33,086 employees in 133 Indian cities and has access to SBI’s network of 22,007 branches across India and their 436.4 million customers to market its products.
SBI Card IPO – Promoters
The promoter of the Company is SBI.
SBI Shareholders Reservation in SBI Cards IPO
Investors who hold SBI shares on the cut-off date (the date of filing RHP with SEBI) are eligible to apply under the shareholder’s category of SBI Cards IPO. As per SEBI, the maximum limit defined for the ‘retail individual shareholders to apply in shareholder category is ₹2 lakhs.
SBI shareholders (bidding up to ₹2 lakhs) can also apply under the retail category. Further, if an SBI shareholder is also an SBI employee, he/she is also eligible to apply in all the three categories- RII (up to ₹2 lakhs), Shareholder (up to ₹2 lakhs) and Employees (up to ₹5 lakhs).
Note: As per the DRHP, SBI Shareholders applying for the Bid Amount above ₹2 lakhs under the SBI Shareholders Reservation Portion, respectively, and QIBs (including Anchor Investors) and Non-Institutional Investors, are not entitled to Bid at Cut-off Price.
We have to wait till RHP to confirm whether the retail individual shareholder is eligible to invest above ₹2 lakhs or only NII/QIB who are SBI shareholder bidding under the shareholder category can apply above ₹2 lakhs.
SBI Employees Reservation in SBI Cards IPO
Full-time or permanent employees of SBI (as on RHP filing date) can apply in the SBI Employees category of SBI Cards IPO. The maximum limit defined to apply in the Employee category is ₹5 lakhs. The maximum allotment to employees cannot be above ₹2 lakhs when the category is fully or oversubscribed.
In case of under-subscription in the employee category, the unsubscribed portion will be available for allocation, proportionately to all Eligible Employees who Bid above ₹2 lakhs, subject to maximum limit not exceeding ₹5 lakhs.
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How to Check SBI Card IPO Allotment Status?
Financials of SBI Cards & Payment Services
SBI Cards Financials for past 3 Years
Past performance and financial results of SBI Cards.
| SBI Cards IPO Financials | 30-Sep-2019 | 31-Mar-2019 | 31-Mar-2018 | 31-Mar-2017 |
|---|---|---|---|---|
| Total Assets | ₹24459.14 Cr | ₹20239.63 Cr | ₹15686.00 Cr | ₹10764.99 Cr |
| Total Expense | ₹3642.62 Cr | ₹5955.24 Cr | ₹4450.85 Cr | ₹2899.42 Cr |
| Total Revenue | ₹4677.21 Cr | ₹7286.83 Cr | ₹5370.19 Cr | ₹3471.04 Cr |
| Net Profit/Loss | ₹725.88 Cr | ₹862.72 Cr | ₹601.14 Cr | ₹372.86 Cr |
SBI Cards IPO Strengths
- 2nd largest credit card issuer in India.
- Diversified customer acquisition capabilities.
- Industry expertise and a demonstrated track record of growth and profitability.
- Supported by a strong brand and pre-eminent Promoters.
- A diversified portfolio of credit card offerings.
- Advanced risk management and data analytics capabilities.
- Modern and scalable technology infrastructure.
- Highly experienced and professional management team.
SBI Cards IPO Threats/Weaknesses
- Loss or reduction in the level of support received from
- Competition from other credit card issuers and payment solutions providers.
- Company may not be successful in implementing growth strategies or penetrating new markets or services.
- SBI Cards IPO Draft Prospectus >>Document
SBI Card IPO Dates & Price Band:
SBI Cards IPO Dates & Price Band:
| IPO Open: | Mar 2, 2020 |
| IPO Close: | Mar 5, 2020 |
| IPO Size: | Approx ₹10351 Crore |
| Face Value: | ₹10 Per Equity Share |
| Price Band: | ₹ 750 to ₹755 Per Share |
| Listing on: | BSE & NSE |
| Retail Portion: | 35 % |
| Equity: | 13,71,49,315 Shares |
SBI Cards IPO Market Lot:
| Lot Size: | Minimum – 19 Shares |
| Minimum Amount: | ₹ 14345 |
| Maximum Amount: | ₹ |
SBI Card IPO Allotment & Listing:
| Basis of Allotment: | Mar 11, 2020 |
| Refunds: | Mar 12, 2020 |
| Credit to Demat Account: | Mar 13, 2020 |
| Listing Date: | Mar 16, 2020 |
SBI Card IPO Grey Market Premium
SBI Card IPO Grey market premium as of today is ₹240-250, Kostak ₹3000 & Subject to Sauda is ₹4000.
IPO grey market movements may change very quickly and rates may be volatile. It is risky to base an investment decision on gray market IPO rates.
SBI Cards IPO Review & Ratings
| SBI Cards IPO Ratings & Review | |
| Criteria | Ratings |
| Industry Sentiments | 8.9/10 |
| Industry Ranking | 8.2/10 |
| Company Background | 8.3/10 |
| Company Reputation | 8.2/10 |
| Competitive Edge | 8.2/10 |
| Financial Statements | 7.8/10 |
| Popularity Index | 7.9/10 |
| Promoters Reputation | 8.2/10 |
| Retail Appetite | 8.8/10 |
| Top Brokers Review | 8.9/10 |
| Overall Ratings | 8.4/10 |
| Star Ratings | ★★★★☆ |
How to Apply for SBI Cards IPO?
If you have a Demat account, most banks offer the online IPO application facility called “ASBA”. You can also contact the broker to apply for in SBI Cards IPO?
Most banks including the SBI bank, ICICI Bank, Axis, and Kotak bank allow the customer to apply in IPO using the Demat account.
- How to Apply SBI Cards IPO Online through ASBA?
- How to Apply SBI Cards IPO through Zerodha KITE Using UPI?
- How to Apply SBI Cards IPO through SBI Net Banking?
- How to Apply SBI Cards IPO through HDFC Netbanking?
How do I apply to the SBI cards IPO via Zerodha?
You can apply to the SBI cards IPO on Console using any supported UPI app. Once you have entered your bid on Console, you will receive a mandate collect request on your UPI app. On acceptance of the mandate, the bid amount will get blocked in your bank account. Read more.
Will I get a discount if I hold shares of SBI?
The Draft Red Herring Prospectus (DRHP) indicates that shareholders of State Bank of India may be eligible for a discount. You will need to hold at least one share of SBI as on the RHP filing date.
The RHP is filed by the merchant banker a week prior to the issue opening dates (which are yet to be announced). When you apply in the shareholder’s category, you might also have a higher chance of getting an allotment.
SBI Cards IPO Allotment Status >>SBI Cards IPO Allotment is not declared yet, expected to be declared by Not Yet Announced, will provide the link once allotment is out.
Company Address
2nd Floor, Tower-B,
Infinity Towers, DLF Cyber City,
Block 2 Building 3, DLF Phase 2,
Gurugram, Haryana 122 002, India
Website: www.sbicard.com
Email: investor.relations@sbicard.com
Phone: +91 (11) 6126 8100
Registrar
C-101, 1st Floor,
247 Park Lal Bahadur Shastri Marg,
Vikhroli (West) Mumbai – 400 083 Maharashtra, India
Email: sbicard.ipo@linkintime.co.in
Website: www.linkintime.co.in
Contact Person: Shanti Goplakrishnan
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SBI Cards IPO FAQ
SBI Cards IPO is a main-board initial public offering of 13,71,49,315 equity shares of the face value of ₹10 aggregating up to ₹10,351 Crores.
SBI Cards & Payments Services Ltd. which was previously known as SBI Cards and Payment Services Private Limited.
The company is coming up with his initial public offering soon. SBI Cards and Payment Services Limited is one of the largest credit card issuer in India. It is not starting the SBI card pay a payment feature based on HCE Technology (Host Card Emulation)
The issue will be open on Mar 02, 2020.
To become eligible SBI Cards shareholder, you must have SBI shares in your Demat account on the cut-off date (the date of filing RHP with SEBI). Buy SBI shares before T+2 trading days of the record date so that you get the credit of the shares in your Demat account a day before the record date.
An individual can also apply in the Shareholders category (any amount) if he holds the State Bank of India (SBI) shares in his Demat account on the day of filing the SBI Card IPO RHP with SEBI. For SBI Card the date of filing RHP with SEBI is awaited.
Eligible Employees can bid under all 3 categories of SBI Card IPO:
Retail Category (< ₹2L)
Shareholder Category
Employee Category
The amount of the bid should not exceed ₹200,000 in shareholder and retail categories.
If you are an SBI employee, you can apply in SBI card using 3 applications, one each in RII, Shareholder and Employee category.
If you hold 1 share of SBI in your Demat account on the cut off date (when RHP is filed), you are eligible to apply under shareholders category of SBI Card IPO.
Here are the steps to apply under shareholder category through Zerodha Console:
- Login to Zerodha Console
- Click on Portfolio tab
- Choose ‘IPO’ from the drop-down list
- Select the IPO you want to invest
- Enter your UPI ID and verify the details
- Select the Investor Type as ‘Share Holding Category’
- Put Bid and Price in the box
- Tick on the checkbox
- Click on Submit button
The SBI Cards IPO Open date is Mar 02, 2020.
SBI Cards IPO application can be done through banks using ASBA online or through stock brokers trading account using UPI. All popular banks i.e. HDFC, ICICI, and SBI offer online IPO applications.
An investor can also apply directly through their broker (i.e. Zerodha, Sharekhan) using UPI as a payment method.
The finalization of the Basis of Allotment for SBI Cards IPO will be done on Mar 11, 2020, and the allotted shares will be credited to your Demat account by Mar 13, 2020. Check the SBI Cards IPO allotment status.
The SBI Cards IPO listing date is Mar 16, 2020. The tentative date of SBI Cards IPO listing is Mar 16, 2020.
SBI Cards IPO lot size is 10351.98 Cr. and the minimum order quantity is 19.
SBI Cards IPO price for retail investors is ₹750-₹755(Tentative). The company is also offering a special discount on TBD.
Yes, you can invest in SBI Cards IPO via UPI. If applying online you can use UPI as well as ASBA any one process, if applying in physical form UPI is mandatory.
The cut-off date for the SBI Shareholder quota is yet to decide (Usually it is RHP filling date). In case you are eligible for shareholding quota, you must apply min one application under shareholding quota.
You can apply a min 1 application in the retail category also. When you submit the application online you will find an option for shareholders as well as retail categories, both of your applications are valid. Try to apply in both the category.
In case you apply in shareholder quota, you can not apply in HNI quota. If you apply shareholder quota and HNI quota then both bid will be rejected.
The process of applying share under the Shareholder category will be the same (ASBA or UPI), you need to select the category as a shareholder. Shareholder Category Reservation is 13,052,680 Equity Shares.
SBI Card IPO expected date is Mar 2, 2020. This is Tentative dates, which can be changed in the future.
When you are applying in SBI Card IPO in shareholding and retail both the categories. You can apply Maximum ₹2 lakhs in Shareholding and Max ₹2 lakhs in the Retail category. So in total, you can apply a maximum ₹4 lakhs.
For a retail investor, SBI Card IPO can be applied in 2 categories – Shareholder Quota and Retail Quota. To get maximum allotment, one can try to get a minimum of 1 share of SBI before the cutoff date to apply in the shareholder category.
Shareholder category allotment is going to be done via a proportionate basis. So if you are a shareholder in SBI, you are going to get shares by sure. The retail category is going to be decided by the lottery mechanism in case oversubscribe.
To avail maximum allotment one needs to apply in both the category up to ₹2 lakhs.