SBI Cards IPO Employees Application - Explained

Published on Tuesday, December 10, 2019 by Chittorgarh.com Team | Modified on Wednesday, February 26, 2020

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SBI Cards IPO Employees Application - Explained

SBI Cards and Payment Services Ltd is a payment solution provider in India. Incorporated in 1998, SBI Card is a venture of State Bank of India (SBI). SBI Cards IPO opens on 2nd March 2020 and closes on 5th March 2020 (4th March for QIB bidders). .

As per the RHP document, SBI Employees can apply in SBI Cards IPO under the reserved category for Employees with certain terms and conditions. This article provides detail about how SBI current and a retired employee of SBI can benefit by applying in SBI Cards IPO under retail, employee and shareholders category of the IPO.

The rules for investing in SBI Cards IPO for SBI employees are as below:


Eligibility for Applying in SBI Employees Quota

  • A permanent employee of SBI Cards or SBI, working in India or outside India (excluding employees who are not eligible to invest in the Offer under laws).
  • A whole-time or part-time Director of SBI Cards who is eligible to apply under the Employee Reservation Portion on 18th Feb 2020 and who continues to be a Director of SBI Cards, until the submission of the Bid cum Application Form.
  • SBI Retired Employees are not eligible to apply in SBI Cards IPO under employee quota.

Note-

  • Eligible Employees should mention their employee number at the relevant place in the Bid cum Application Form.
  • Directors who directly or indirectly, hold more than 10% of the outstanding Equity Shares in SBI Cards are not eligible to apply.

Read more about SBI Cards IPO


Maximum Eligible Bidding Limit in SBI Employees Category

₹500,000 is the Maximum limit to apply under the employee category of SBI Cards IPO. But the process allotment will be as below:

  • If IPO oversubscribed in the employee category, a maximum ₹2L bid will be accepted.
  • If IPO under-subscribed in the employee category, the unsubscribed portion may be allocated on a proportionate basis to Eligible Employees Bidding in the Employee Reservation Portion, for a value in excess of ₹200,000, subject to the total Allotment to an Eligible Employee not exceeding ₹500,000.

Bidding Rules in SBI Employees Portion

  • The Bid must be for a minimum of 19 Equity Shares and in multiples of 19 Equity Shares to a Maximum Bid Amount of ₹5 Lakhs.
  • Eligible Employees under the Employee Reservation Portion may Bid at Cut-off Price.
  • Only those Bids, received at or above the Offer Price, net of Employee Discount, would be considered for Allotment.
  • In the case of joint bids, the First Bidder shall be an Eligible Employee.
  • Eligible Employees shall not Bid through the UPI mechanism.

Application Rules for Bidding in Multiple Categories (Employee)

  • SBI Employees can bid in multiple categories using one demat account (PAN Number). This includes

If applying in multiple categories, the maximum limit will be as below:

CategoryMaximum Limit

Employee Category

Maximum ₹5 Lakhs

Shareholders Category

Maximum ₹2 Lakhs

General Category

Any Amount*

* Bid under Retail Individual Bidders Portion for upto ₹200,000 OR in Non-Institutional Bidders Portion such that the Bid Amount exceeds ₹200,000 but not exceeding the size of the Net Offer (excluding QIB portion).

Allocation Rules in SBI Employees Category

If total demand in the employee category is less than or equal to 1,864,669 Equity Shares (total shares allocated to employees) at or above the Offer Price, the full allocation shall be made to the Eligible Employees.

In case of an under-subscription in the Employee Reservation Portion, the unsubscribed shares may be allocated on a proportionate basis to employees bidding in excess of ₹200,000. However, the total allotment in under-subscription, as well as over-subscription, will not exceed ₹ 500,000.


Rules for Eligible Employees as per RHP (Page 441)

The Bid must be for a minimum of 19 Equity Shares and in multiples of 19 Equity Shares thereafter so as to ensure that the Bid Amount payable by the Eligible Employee does not exceed ₹500,000 on a net basis. However, the initial allocation to an Eligible Employee in the Employee Reservation Portion shall not exceed ₹200,000 (which will be less Employee Discount). Only in the event of an under-subscription in the Employee Reservation Portion post the initial allocation, such unsubscribed portion may be allocated on a proportionate basis to Eligible Employees Bidding in the Employee Reservation Portion, for a value in excess of ₹200,000, subject to the total Allotment to an Eligible Employee not exceeding ₹500,000 (which will be less Employee Discount). Eligible Employees under the Employee Reservation Portion may Bid at Cut-off Price.

Bids under Employee Reservation Portion by Eligible Employees shall be:

  • Made only in the prescribed Bid cum Application Form or Revision Form (i.e. [.] colour form).
  • The Bid must be for a minimum of 19 Equity Shares and in multiples of 19 Equity Shares thereafter so as to ensure that the Bid Amount payable by the Eligible Employee subject to a maximum Bid Amount of ₹500,000 (which will be less Employee Discount) on a net basis. Eligible Employees under the Employee Reservation Portion may Bid at Cut-off Price.
  • Eligible Employees should mention their employee number at the relevant place in the Bid cum Application Form.
  • Only Eligible Employees would be eligible to apply in this Offer under the Employee Reservation Portion and the Bidder should be an Eligible Employee as defined above.
  • Bids by Eligible Employees in the Employee Reservation Portion and in the Net Offer portion shall not be treated as multiple Bids. Further, bids by Eligible Employees in the Employee Reservation Portion and in the SBI Shareholders Reservation Portion (subject to Bid Amount being up to ₹200,000), as SBI Shareholders, shall also not be treated as multiple Bids. Therefore, Eligible Employees bidding in the Employee Reservation Portion and the SBI Shareholders Reservation Portion (subject to the Bid Amount being up to ₹200,000) can also Bid under the Net Offer and such Bids will not be treated as multiple Bids. Our Company reserves the right to reject, in its absolute discretion, all or any multiple Bids in any or all categories.
  • Only those Bids, which are received at or above the Offer Price, net of Employee Discount, if any, would be considered for Allotment under this category.
  • Eligible Employees can also Bid in the Net Offer to the Public and such Bids shall not be treated as multiple Bids.
  • In case of joint bids, the First Bidder shall be an Eligible Employee.
  • Eligible Employees shall not Bid through the UPI mechanism.
  • If the aggregate demand in this category is less than or equal to 1,864,669 Equity Shares at or above the Offer Price, full allocation shall be made to the Eligible Employees to the extent of their demand.

In the event of under-subscription in the Employee Reservation Portion, the unsubscribed portion will be available for allocation and Allotment, proportionately to all Eligible Employees who have Bid in excess of ₹200,000, subject to the maximum value of Allotment made to such Eligible Employee not exceeding ₹500,000.

Under-subscription, if any, in any category including the Employee Reservation Portion and the SBI Shareholders Reservation Portion, except in the QIB Portion, would be allowed to be met with spill over from any other category or a combination of categories at the discretion of our Company in consultation with the BRLMs and the Designated Stock Exchange.

FAQ's

  1. 1. How much is SBI Card IPO Employee Discount?

    SBI Card IPO employee discount is ₹75 per equity share. If the issue price is fixed at ₹755, the employees will get the shares at ₹680.

    Discuss this question

  2. 2. What is for SBI staff in SBI card IPO?

    SBI Bank IPO offers a reservation of 1.35% shares for SBI staff. SBI Employees also get a discount of ₹75 when applying in the employee reservation category. An employee of the state bank of India can apply up to ₹5 Lakhs in the employee category.

    This offers an excellent opportunity for SBI employees to make quick money from this IPO. The 10% discount and expected 40% up listing could result in total gains up to 50%.

    In addition to the employee reservation category, SBI staff can also apply in:

    1. Shareholders Category - If they hold SBI shares in demat account as of Feb 18, 2020.
    2. General Category - Retail Category (<₹2 Lakhs) or Non-Institutional Investor Category (>₹2 Lakhs)

    Discuss this question

  3. 3. Can I sell my share allocated in employee quota on the listing day of SBI Cards IPO?

    Yes. The shares allocated under employee quota of SBI Cards IPO are treated in the same way as shares allotted in the retail category. You can sell them, transfer them or give them as a gift once the shares are credited in your demat account.

    Discuss this question

  4. 4. What is the maximum limit in the employee category in SBI Card IPO?

    The maximum amount SBI Employee can apply for in SBI Cards IPO under the Employee category is ₹500,000.

    However, the initial allotment to an employee is limited to ₹200,000 only. The remaining ₹300,000 will be considered in case of under-subscription. The unsubscribed portion will be allocated proportionately to all Eligible Employees applied between Rs 2L to Rs 5L.

    Discuss this question

  5. 5. Can a retired employee of SBI apply under the employee quota of the SBI card IPO?

    No, retired employees from SBI are not eligible to apply in employee quota of SBI Cards IPO. Only current employees of State Bank of India can apply under the employee category.

    However, if you hold SBI shares till the cut-off date (18th Feb 2020) then you can apply in SBI shareholder's quota or apply in general in the retail category.

    Discuss this question

  6. 6. Can SBI pensioner apply in the employee category of SBI card IPO?

    No, pensioners of SBI are not eligible to apply in employee quota in SBI Cards IPO. The employee category is reserved only for current employees.

    However, if you hold SBI shares till the cut-off date (18th Feb 2020) then you can apply in SBI shareholders quota or apply in general in the retail category

    Discuss this question

  7. 7. Can an SBI employee bid in both, employee and shareholders quota in SBI Card IPO?

    Employees can bid in 3 categories using the same demat account and PAN number in SBI Cards IPO. This includes

    • Employee Portion (up to ₹500,000)
    • Shareholders Reservation Portion (up to ₹200,000)
    • General Retail Portion (Any Amount*)

    If you apply in all 3 categories, you will be eligible to get the allotment in all 3 categories.

    Note: Eligible Employees shall not Bid through the UPI mechanism.

    * Considered as RII or NII based on the amount you apply. It is considered as Retail Individual Bidders Portion (RII) for upto ₹200,000 OR in Non-Institutional Bidders Portion (NII) when the Bid Amount exceeds ₹200,000

    Discuss this question

  8. 8. Are there any restrictions on the shares allotted to SBI employees in SBI Cards IPO?

    No. There are no restrictions or limitations on shares allotted under the Employee Reservation Category of SBI Cards IPO. These shares are treated the same as shares allotted in the general retail category. You can sell them on the same day of listing for listing day gains.

    Discuss this question

  9. 9. Can SBI employee apply in Employee portion through others Demat account?

    No. An employee cannot apply in Employee portion through others Demat Account. The name of the person in the PAN card should match with Demat holder's name.

    Discuss this question

  10. 10. How can I bid at or above the offer price in SBI Cards Employee category?

    The offer price is the final price on which shares are allotted. As it is a book building issue, the issue will be available in the price band for bidding. The investors who bid in the employee category can bid at any price in the price band. After finalising the offer price, the bids which are received at or above the offer price would be eligible to get allotment.

    The best way to bid at or above the offer price is to bid at the cap price of the price band.

    Discuss this question

  11. 11. How many shares are reserved for employees in SBI Card IPO?

    SBI Card IPO has 1,864,669 Equity Share reserved for State Bank of India (SBI) employees. Approximate 1.35% of the total issue size is reserved for employees. Note the employee quote is applicable only for current employees. It excludes retired SBI employees.

    • Shares offer to Employees: 1,864,669 Equity Share (~1.35%)
    • Total Shares Offered: Rs 500 Cr (Fresh Issue) + 130,526,798 (OFS)

    Discuss this question

  12. 12. How shares are distributed among applicants in employee category?

    Shares are distributed on a proportionate basis in SBI Card IPO employee category. Rs 5 lakhs is the maximum limit in the employee category.

    Discuss this question

  13. 13. Can an employee bid in SBI Card IPO using UPI under employee quota?

    No, Eligible Employees are not permitted to apply through the UPI mechanism in SBI Card IPO. The eligible employees cannot apply through brokers who don't offer a 3-in-1 account. This means you cannot apply in SBI Card IPO's employee category using your account with Zerodha, 5paisa, Edelweiss, Upstox, etc.

    Discuss this question

  14. 14. Is there any locking period for shares allotted under the employee category?

    No, there is no locking period for shares allocated under the employee category. SBI current employees can apply for SBI Card IPO shares of up to Rs 5 Lakhs under employee reservation. They get ₹75 discount too.

    Discuss this question

  15. 15. How can I apply under the employee's category online?

    If you are applying in an IPO through the net-banking facility of SBI, ICICI or HDFC, you can find an option to apply an employee category as shown below.

    ICICI  IPO Application

     

     

    The options to apply in the employee category is not available with discount brokers like Zerodha, 5paisa, Upstox, and Edelweiss.

    Zerodha IPO Application

    Discuss this question

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23 Comments

Pradeep
23. Pradeep  Feb 29, 2020 04:14 I Like It. | I Don't Like It. | Report Abuse Reply
I am sbi employee, kiya me apne net banking se apne kisi dusre sbi staff ka ipo apply kar sakta hu, mere account me paise he or mera net banking kaling dmet account dusre staff ka
NAGESH POTDAR
23.1. NAGESH POTDAR  Feb 29, 2020 13:14 I Like It. | I Don't Like It. | Report Abuse
I am SBI employee. If I can't apply by UPI mechanism then what are the other ways to apply under employees category...
Manoj
23.2. Manoj  Mar 4, 2020 23:04 I Like It. | I Don't Like It. | Report Abuse
I am SBI employee. If I can't apply by UPI mechanism then what are the other ways to apply under employees category.
AKK
22. AKK  Mar 3, 2020 21:00 I Like It. | I Don't Like It. | Report Abuse Reply
As per this subscription details please advise us either we should apply for application of Rs.200000 or Rs.500000
Manoj
22.1. Manoj  Mar 4, 2020 22:57 I Like It. | I Don't Like It. | Report Abuse
As per this subscription details please advise us either we should apply for application of Rs.200000 or Rs.500000
DK
21. DK  Mar 2, 2020 12:53 I Like It. | I Don't Like It. | Report Abuse Reply
Hi, I am an SBI employee and want to invest in this IPO. Please let me know if I can use the SBI netbanking option for it? Also if I am filling it through this means, the employee category does not ask my employee ID anywhere. Is it ok, not to mention my ID anywhere and go ahead and submit it?
Rohit jindal
21.2. Rohit jindal  Mar 3, 2020 18:00 I Like It. | I Don't Like It. | Report Abuse
Same doubt for me
Mani Kant
21.3. Mani Kant  Mar 4, 2020 16:35 I Like It. | I Don't Like It. | Report Abuse
Same doubt?

Someone please reply.

Did I missed to enter employee name?
or will it consider on the basis of PAN card number
ABCD
20. ABCD  Mar 3, 2020 14:41 I Like It. | I Don't Like It. | Report Abuse Reply
Hi , I am working with SBI but I have my DEMAT Account in ICICI , Will i get an employee discount if I apply through SBI net banking and put ICICI Demat's account detail there??
Hiral
19. Hiral  Mar 3, 2020 11:15 I Like It. | I Don't Like It. | Report Abuse Reply
Can an SBI employee on probation period apply for SBI Cards IPO??
MAYANK Sharma
18. MAYANK Sharma  Mar 3, 2020 09:22 I Like It. | I Don't Like It. | Report Abuse Reply
Can SBI life employees apply under employee quota?
venkat
17. venkat  Mar 2, 2020 15:32 I Like It. | I Don't Like It. | Report Abuse Reply
I have Zerodha account linked with SBI bank account. Can I apply through Net banking via Employee category ?
Khyati Kelkar
16. Khyati Kelkar  Mar 2, 2020 13:22 I Like It. | I Don't Like It. | Report Abuse Reply
where will we get the form to apply under employee discount as the brokers dont have that form
Team Chittorgarh.com
16.1. Team Chittorgarh.com  Mar 2, 2020 14:02 I Like It. | I Don't Like It. | Report Abuse
Top Contributor Top Contributor (200+ Posts, 300+ Likes)
Please ally thing SBI net banking. Being an SBI employee, you should have access to SBI net banking.
SENDHIL KUMAR
15. SENDHIL KUMAR  Mar 2, 2020 07:59 I Like It. | I Don't Like It. | Report Abuse Reply
Hi, I'm SBI employee, MY SALARY ACCOUNT IS CURRENT ACCOUNT; Some times system is not allowing me to apply IPOs using / debiting current account. Reason: Current account should not used for investment in SHARES. At a same time this current account is the only account linked to my PAN. In that case please guide me how to go about it.
Shital More
14. Shital More  Feb 29, 2020 16:15 I Like It. | I Don't Like It. | Report Abuse Reply
Hi Team,
I Am SBI Employee, My demat account is in UPSTOX, Please guide me how i can apply for SBI Card IPO.
Can i apply through ASBA SBI Netbanking?
M K Jain
13. M K Jain  Feb 29, 2020 14:28 I Like It. | I Don't Like It. | Report Abuse Reply
Please clarify how the allotment will be made under employee quota for bidders upto Rs 2 lac in case of over subscription : proportionately or by lottery system
DEVIKA CHOPRA
12. DEVIKA CHOPRA  Feb 27, 2020 18:29 I Like It. | I Don't Like It. | Report Abuse Reply
hello
i am an employee of sbi and shareholder too so i can apply in all 3 categories . I have around 6 lac to apply. in which should i apply so as to maximise chances? eg should i apply full 5 lac in employee category because it will surely be over subscribed???
Ankit Nijhawan
12.1. Ankit Nijhawan  Feb 28, 2020 21:44 I Like It. | I Don't Like It. | Report Abuse
Apply more in share holder category
That has more chsnce
I m sbi staff too
Maheshkumar
11. Maheshkumar  Feb 28, 2020 15:41 I Like It. 2 | I Don't Like It. | Report Abuse Reply
Hi , I am working as SBI Life Insurance Adviser. How to get employee discount is ₹75 per equity share. .?? I am eligible or Not ??
Kindly Replay
Shairee
10. Shairee  Feb 28, 2020 11:56 I Like It. 1 | I Don't Like It. | Report Abuse Reply
While placing BID under employees, should the range be 675 - 680 , after applying the discount rate ?
or Employee has to also bid 750 -755 range; and once the allotment of share happens then only they get the discount.

Please clarify and update on this case.
Chetan kumar
9. Chetan kumar  Feb 20, 2020 00:16 I Like It. 1 | I Don't Like It. | Report Abuse Reply
Will An employee who is currently under suspension also eligible for applying this ipo???
Team Chittorgarh.com
9.1. Team Chittorgarh.com  Feb 26, 2020 10:09 I Like It. | I Don't Like It. 1 | Report Abuse
Top Contributor Top Contributor (200+ Posts, 300+ Likes)
Dear Mr Chetan,
Sorry, we are not sure about this.

If do not get an answer to your question, we suggest you go ahead and apply. In the worst case, it may get rejected.
Uma shanker prasad
9.2. Uma shanker prasad  Feb 28, 2020 10:42 I Like It. | I Don't Like It. | Report Abuse
Suspension doesn't debar one being an employee.
Shobha Maru
8. Shobha Maru  Feb 23, 2020 14:02 I Like It. 1 | I Don't Like It. | Report Abuse Reply
Hi. I am on probation in state Bank of India. Can I apply through employee reservation. I have my employee code too.
Team Chittorgarh.com
8.1. Team Chittorgarh.com  Feb 26, 2020 10:08 I Like It. | I Don't Like It. | Report Abuse
Top Contributor Top Contributor (200+ Posts, 300+ Likes)
Sorry Ma'am,
We are not sure about this.

If do not get an answer to your question, we suggest you go ahead and apply. In the worst case, it may get rejected.
USPrasad
8.2. USPrasad  Feb 28, 2020 10:40 I Like It. | I Don't Like It. | Report Abuse
Whether on probation or not, you are a permanent employee, hence you are eligible.
devika
7. devika  Feb 27, 2020 18:26 I Like It. | I Don't Like It. | Report Abuse Reply
hello
l am an employee of SBI and a shareholder too. So i can apply in all 3 sections? i have around 6 lac so should i apply 5 in employee and 1 in shareholder? or retail so as to maximise chances . please advise.
Navin
6. Navin  Feb 27, 2020 14:10 I Like It. 1 | I Don't Like It. | Report Abuse Reply
Can I apply in employee category using ASBA? Or physical form is mandatory for this category?
Raja Mohanan M
5. Raja Mohanan M  Feb 26, 2020 21:56 I Like It. 1 | I Don't Like It. | Report Abuse Reply
Sir, I am an SBI employee as well as share holder. To get maximum allotment is it good to apply in all three categories? There is a view that it is better to apply in employee quota only. Is it right?
Team Chittorgarh.com
5.1. Team Chittorgarh.com  Feb 27, 2020 09:54 I Like It. | I Don't Like It. | Report Abuse
Top Contributor Top Contributor (200+ Posts, 300+ Likes)
As per the current situation, you should apply in all 3 categories as:

Retail Category: 1 lot (19 shares)
Employee Category: Rs 5 Lakhs
Shareholders Category: Rs 2 Lakhs (Or based on the subscription figures on the last day.)
Deepak
4. Deepak  Feb 26, 2020 13:40 I Like It. | I Don't Like It. | Report Abuse Reply
My Father is a current SBI employee and he holds a demat account. Now, can I apply for SBI Cards IPO under employee category with his employee id and demat account details?
Team Chittorgarh.com
4.1. Team Chittorgarh.com  Feb 27, 2020 09:44 I Like It. | I Don't Like It. | Report Abuse
Top Contributor Top Contributor (200+ Posts, 300+ Likes)
Yes you can apply from your bank account as long as you are using ASBA as payment option.

You cannot do this when choosing UPI as payment gateway (i.e. applying through Zerodha, Edelweiss or 5paisa as broker)
prashant singh
3. prashant singh  Feb 22, 2020 11:53 I Like It. | I Don't Like It. | Report Abuse Reply
How an employeeb of sbi apply for the ipo? It is online or offline?
Pareshkumar soni
3.1. Pareshkumar soni  Feb 25, 2020 17:08 I Like It. | I Don't Like It. | Report Abuse
How an employees can apply in employee quota online or offline... can i apply in employee quota at cutoff price...?
Team Chittorgarh.com
3.2. Team Chittorgarh.com  Feb 26, 2020 10:06 I Like It. | I Don't Like It. | Report Abuse
Top Contributor Top Contributor (200+ Posts, 300+ Likes)
All applications in the SBI Card IPO should be online. You could use ASBA (net banking) or UPI as a payment option. Almost all brokers or banks will give you an option to apply in SBI Card IPO using retail, shareholders and employee category.
R OLAGANATHAN
2. R OLAGANATHAN  Jan 8, 2020 09:44 I Like It. | I Don't Like It. | Report Abuse Reply
WHO WILL GET THE DISCOUNT OF RS.18/00
Team Chittorgarh.com
2.1. Team Chittorgarh.com  Jan 18, 2020 09:49 I Like It. | I Don't Like It. | Report Abuse
Top Contributor Top Contributor (200+ Posts, 300+ Likes)
The employee discount has not yet announced. It will be announced along with the IPO dates.
Rohit
1. Rohit  Jan 8, 2020 19:25 I Like It. | I Don't Like It. | Report Abuse Reply
What % is reserved for employees.
Team Chittorgarh.com
24.1. Team Chittorgarh.com  Jan 18, 2020 09:48 I Like It. | I Don't Like It. | Report Abuse
Top Contributor Top Contributor (200+ Posts, 300+ Likes)
Shares offer to Employees: 1,864,669 Equity Share
Total Shares Offered: Rs 500 Cr (Fresh Issue) + 130,526,798 (OFS)

This comes out around 1.35% of total issue size is offered to employees.







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