SBI Cards IPO FAQs

Yes, SBI Card is a subsidiary of SBI, India's largest commercial bank in terms of deposits, advances and number of branches. State Bank of India (SBI) hold 74% and Carlyle Group hold 26% stack in SBI Card.

SBI Card was incorporated in 1998 as a joint venture between State Bank of India and GE Capital. In 2017, GE Capital existed and its stake was taken over by SBI and Carlyle Group.

1. Visit SBI Cards IPO Page.
2. Click on Draft Prospectus Link under 'SBI Cards IPO Prospectus' section.

It is difficult to day if SBI Card IPO will be profitable for investors. The IPO rewards depend on many factors including issue pricing and market sentiments.

As per the current estimation (20 Jan 2020), this IPO is expected to be a blockbuster IPO for retail investors. The grey market premiums are show 20 to 30% of listing gains.

The answer depends on many factors including issue price, issue dates, market sentiments and the grey market premium. But an investor must buy minimum 1 share of SBI and hold in their account until SBI Cards IPO RHP is filed to be eligible for shareholders category. If you are SBI shareholder on the day of RHP filing, you are eligible to invest in both Retail and Shareholders category for 2 L each. This increases the chances of getting allotment.

Experts are very positive about SBI Cards IPO at this time. Most of them are waiting for its price announcement but it is widely expected that almost all experts will recommend to subscribe this IPO because of its strong fundamentals.

• 2^nd largest credit card issuer in India with 18% market share
• Dividend paying company
• Strong profitability
• Wide range of produces
• Diversified customer acquisition network
• Technology-driven Business
• Diversified revenue model
• Consistently generating profits over the past three fiscal years
• Credit card industry expected to grow 2.5 times in the next five years

As per the new SEBI rules, you could apply in SBI card using 2 ways:

1. Online through ASBA through banks providing 3-in-1 bank account (i.e. SBI, ICICI, HDFC)
2. Online through brokers using UPI IPO application (i.e. Zerodha or 5paisa).

The paper based applications for IPO are not accepted anymore.

No, SBI Cards IPO will open in March 2020. The issue open date and close date are announced that is 2nd March and 5th March, respectively.

No, SBI Cards IPO has filed RHP with SEBI on 18th Feb 2020. The IPO will open from 2nd to 5th March, 2020. You need to have the credit of SBI shares in your Demat account as on RHP approval date (Record Date) to become eligible for shareholder category.

If you are an eligible individual, NRIs, HUFs, corporate bodies, and NIIs recognised under SEBI, you can invest in SBI Cards IPO. SBI Cards IPO also has special categories for shareholders and employees.

If you are a shareholder of SBI on Feb 18, 2020, you have the following 2 options to invest in SBI Cards IPO:

1. Invest only in Shareholders Category. In this case, you can invest any amount of money.
2. Invest in Shareholders and General Category (RII/NII). In this case, you could invest up to Rs 200,000 in shareholders category and any amount in the general category. The general category is considered as RII or NII based on the amount you apply. It is considered as Retail Individual Bidders Portion (RII) for up to Rs 200,000 OR in Non-Institutional Bidders Portion (NII) when the Bid Amount exceeds Rs 200,000.

Hardayal Prasad is the CEO of SBI Cards & Payment Services Ltd. Mr Prasad joined SBI Card in Feb 2018. He has been with SBI for over three decades. Based in Gurgaon, he handles all the aspects of SBI Card's business across India.

No, you cannot apply in Shareholders and NII categories using the same name. If you do so, both of your applications will be rejected.

If you planning to apply in multiple categories, you have to choose the RII category with the following limits:

• Retail Individual Investor (RII) - Up to Rs 2 Lakhs
• Shareholders Category - Up to Rs 2 Lakhs

Note: There is no such limit if you are applying only in the shareholder's category.

The RHP of the SBI Card IPO was filed on August 18, 2020. This is the cut-off date for the eligibility to apply for IPO shares in the shareholder's reservation category.

SBI Card IPO opening from Mar 2, 2020, to Mar 5, 2020. The last day of the IPO is reserved only for Retail, HNI, and shareholders. SBI Card IPO launch date is Mar 2, 2020.

You could apply to SBI Card IPO in a couple of ways.

1. Net Banking

   Apply directly from the net banking facility of your bank. Almost all popular banks offer an online IPO application. Check how to apply in IPO using SBI, ICICI, HDFC, PNB, Axis, Kotak Net Banking.

2. Through Stock Broker

   Check with your broker, if they offer IPO. Brokers like Zerodha, Edelweiss, Sharekhan, and 5paisa offer UPI based online IPO applications, which is a convenient way to apply in SBI Card IPO.

Yes, Non-Resident Indians (NRIs) are eligible to apply in SBI Card IPO under retail and HNI Category.

Note: NRI, who hold SBI shares in their demat account, are not permitted to apply for SBI IPO shares under shareholders category.

Check the page 404 of SBI Card RHP document for more detail.

Yes, it is a good idea to invest in SBI Card IPO for short term listing gain as well as for long term investment. Between 25 to 35 Lakh IPO applications are expected in this IPO, which shows a solid demand for its shares. The higher demand results in better listing gains.

SBI Cards & Payment Services Ltd is a fundamentally strong company with a lucrative business and a wide range of products offering. It has a market share of around 20% in the Indian credit card market.

No, it is not mandatory to own SBI shares to apply in SBI Card IPO. Investors, who are not SBI shareholders, can apply in retail and NII categories.

If you are an SBI shareholder, you get an additional benefit to apply under the shareholder's category. This increases the chances of allotment and thus profitability.

Applying through a bank that offers 3rd Party IPO Application is the only way to apply for SBI IPO shares in the minor's demat account.

As per SEBI guidelines on ASBA supported IPO application, Five (5) applications can be made from a bank account per issue. But only the public sector banks like SBI offer this facility. Private banks like ICICI, HDFC, Axis, Kotak doesn't offer multiple IPO application per bank account.

UPI based IPO application is not an option in the case of Minor as only minor above the age of 15 with a bank account as a single (not joint) are eligible for UPI.