Incorporated in 1998, SBI Cards and Payment Services Limited is a subsidiary of SBI, India's largest commercial bank in terms of deposits, advances and the number of branches. SBI currently holds (along with its nominees) 689,927,363 Equity Shares, constituting to 74.00 % of the pre-Offer issued, subscribed and paid-up Equity Share capital of the Company.
The company the 2nd largest credit card issuer in the country, with a 17.6% and 18.1% market share of the Indian credit card market (number of credit cards) as of March 31, 2019, and November 30, 2019, respectively, and a 17.1% and 17.9% market share of the Indian credit card market ( total credit card spends) in fiscal 2019 and in the eight months ended November 30, 2019.
SBI Cards offers a wide range of credit cards to individual and corporate clients including lifestyle, rewards, shopping, travel, fuel, banking partnership cards, and corporate cards, etc.
SBI Cards has partnered with several leading names across industries, including Air India, Apollo Hospitals, BPCL, Etihad Guest, Fbb, IRCTC, OLA Money and Yatra, amongst others.
As a subsidiary of SBI, the company has access to SBI's extensive network of 21,961 branches across India. The partnership enables it to market its cards to a huge customer base of 445.5 million customers.
Headquartered in New Delhi, as of December 31, 2019, the company has a sales force of 38,677 outsourced sales personnel operating out of 145 Indian cities.
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% between fiscal 2017 to 2019. The net profit grew at a CAGR of 52.1% during the period.
Competitive Strengths
1. 2nd largest credit card issuer in India with a strong track record of growth and profitability.
2. Leading player in open market customer acquisitions using physical and digital channels in India.
3. A well-known promoter in SBI with strong brand recognition.
4. Diversified credit card portfolio and partnerships with leading brands across industries.
The promoter of the Company is SBI.
| Particulars | For the year/period ended (₹ in Million) | ||||
|---|---|---|---|---|---|
| 31-Dec-19 | 31-March-19 | 31-Mar-18 | 31-Mar-17 | ||
| Total Assets | 259,934.65 | 202,396.36 | 156,860.07 | 107,649.82 | |
| Total Revenue | 72,401.56 | 72,868.35 | 53,701.92 | 34,710.38 | |
| Profit After Tax | 11,612.07 | 8,627.22 | 6,011.42 | 3,728.61 | |
The Offer comprises of a Fresh Issue and an Offer for Sale-
1. The Offer for Sale- The object of the Offer for Sale is to allow the Selling Shareholders to sell an aggregate of up to [●] Equity Shares held by them. The company will not receive any proceeds from the Offer for Sale.
2. Fresh Issue- The net proceeds of the Fresh Issue, i.e. Gross proceeds of the Fresh Issue less the Offer Expenses apportioned to the Company ("Net Proceeds") are proposed to be utilized for augmenting the capital base to meet company's future capital requirements.
| IPO Date | Mar 2, 2020 - Mar 5, 2020 |
| Issue Type | Book Built Issue IPO |
| Issue Size | 137,193,464 Eq Shares of ₹10 (aggregating up to ₹10,354.77 Cr) |
| Fresh Issue | 6,622,517 Eq Shares of ₹10 (aggregating up to ₹500.00 Cr) |
| Offer for Sale | 130,526,798 Eq Shares of ₹10 (aggregating up to ₹9,854.77 Cr) |
| Face Value | ₹10 Per Equity Share |
| IPO Price | ₹750 to ₹755 Per Equity Share |
| Employee Discount | ₹75 |
| Market Lot | 19 Shares |
| Min Order Quantity | 19 Shares |
| Listing At | BSE, NSE |
| P/E (x) | 45.8 |
| Market Cap (₹ Cr.) | 70890 |
| Bid/Offer Opens On | Mar 2, 2020 |
| Bid/Offer Closes On | Mar 5, 2020 |
| Finalisation of Basis of Allotment | Mar 11, 2020 |
| Initiation of Refunds | Mar 12, 2020 |
| Credit of Shares to Demat Acct | Mar 13, 2020 |
| IPO Shares Listing Date | Mar 16, 2020 |
| Application | Lots | Shares | Amount (Cut-off) |
|---|---|---|---|
| Minimum | 1 | 19 | ₹14,345 |
| Maximum | 13 | 247 | ₹186,485 |
| Pre Issue Share Holding | 74% |
| Post Issue Share Holding | 69.51% |
Investors who hold SBI shares on the 18th Feb 2020 (the date of filing RHP with SEBI) are eligible to apply under the shareholder's category of SBI Cards IPO. As per RHP, the SBI shareholders can apply above ₹2 lakh and maximum up to reserved poprtion for the SH category. 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).
Continue reading about SBI Cards IPO Shareholders Application Detail
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.
Continue reading about SBI Cards IPO Employees Application - Explained
Note:
No. of Times Issue Subscribed (BSE + NSE) | ||||||
|---|---|---|---|---|---|---|
As on Date & Time | QIB | NII | RII | Employee | Others | Total |
Shares Offered | 24,224,003 | 18,341,418 | 42,796,641 | 1,864,669 | 13,052,680 | 100,279,411 |
Mar 5, 2020 18:45 | 57.18x | 45.23x | 2.50x | 4.74x | 25.36x | 26.54x |
| Listing Date | Monday, March 16, 2020 |
| BSE Script Code | 543066 |
| NSE Symbol | SBICARD |
| Listing In | B |
| ISIN | INE018E01016 |
| IPO Price | ₹755 Per Equity Share |
| Face Value | ₹10 Per Equity Share |
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SBI Cards and Payment Services Ltd
Unit 401 & 402, 4th Floor,
Aggarwal Millennium Tower E-1,2,3,
Netaji Subhash Place, Wazirpur, New Delhi
Phone: +91 (11) 6126 8100
Email: investor.relations@sbicard.com
Website: http://www.sbicard.com/
Link Intime India Private Ltd
Link Intime India Private Ltd
C 101, 247 Park, L.B.S.Marg,
Vikhroli (West), Mumbai - 400083
Phone: +91-22-4918 6270
Email: sbicard.ipo@linkintime.co.in
Website: http://www.linkintime.co.in
SBI Cards & Payment Services Ltd is coming up with an initial public offer of around ₹10,000 Cr to offer an exit to the existing shareholders, expand the capital base and get listed at BSE and NSE stock exchanges.
The SBI Card IPO opens on Mar 2, 2020, and closes on Mar 5, 2020. The bidding closes for retail investors on March 5, 2020, at 5 PM.
The SBI Card IPO price and lot size are not yet announced. They are expected to be announced on or before Feb 26, 2020.
SBI Card IPO also has a reserved quota for SBI employees. SBI employees can apply up to ₹5L under employee quota in addition to ₹2L in retail and ₹2L in shareholders' quota.
The SBI Card IPO shareholder quota cut-off date is Aug 18, 2020. Investors who have SBI shares in their demat account on this date are eligible to apply in the reserved shareholder's category.
SBI card IPO shares are proposed to list at BSE and NSE. Its expected listing date is Mar 16, 2020.
There are two ways to buy SBI Card IPO shares:
The net-banking facility of popular banks offers an Online IPO application. If you have your account with banks like SBI, ICICI, HDFC, PNB, Axis, Kotak, you can easily apply in SBI Card IPO online.
Most top share brokers in India including Zerodha, Edelweiss, Sharekhan, and 5paisa offer UPI payment gateway based online IPO application. If you have an account with a broker who offers an online IPO application, you could easily apply in IPO though them.
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.
SBI shareholders can apply in both; RII or NII as well as shareholder category with the maximum limit of ₹200,000 in shareholders category.
Please note an eligible SBI shareholder bidding in SBI shareholder reservation portion (subject to bid amount not exceeding ₹2,00,000 under SBI shareholder reservation portion) may also bid under net offer i.e. either in 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), subject to applicable limits.
An SBI Shareholders bidding in the SBI Shareholders Reservation Portion above ₹200,000 cannot Bid in the Net Offer as such Bids will be treated as multiple Bids.
The maximum bid amount when applying in both Retail and Shareholders Category is:
An eligible SBI shareholder bidding in SBI shareholder reservation portion (subject to bid amount not exceeding ₹2,00,000 under SBI shareholder reservation portion) may also bid under net offer i.e. either in 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), subject to applicable limits.
In SBI Shareholders bidding in the SBI Shareholders Reservation Portion above ₹200,000 cannot Bid in the Net Offer as such Bids will be treated as multiple Bids.
Your bids can be rejected in SBI Card IPO considering multiple bids in the following cases:
Eligible Employees can bid under all 3 categories of SBI Card IPO:
An SBI shareholder and employee of SBI can apply in all three categories. A spate IPO application should be used for each of these categories.
* Retail application is considered as RII or NII category based on the amount in application. Amount < ₹2L is considered as RII and above ₹2L is NII.
Minimum 1 share of SBI should be in your demat account on February 18, 2020, to be eligible for applying in shareholders category of SBI Cards IPO. Feb 18 is the cut-off date for eligibility. The IPO application should be on the name of the primary demat account holder.
The cut-off date for eligible SBI Cards shareholders is Feb 18, 2020. You should have at least 1 share in your demat account on Feb 18, 2020, to be eligible to apply for IPO shares in the SBI Card IPO Shareholders category.
Zerodha customers can apply in SBI Card IPO using UPI as a payment gateway from the Zerodha Console application. Follow the below steps to buy SBI Card IPO through Zerodha:
SBI Card IPO RHP point 24 on page 416 "Do not submit a Bid cum Application Form with third-party UPI ID or using a third-party bank account (in case of Bids submitted by Retail Individual Investors using the UPI Mechanism)"
The 3rd party IPO application (with different primary account holder in demat and bank) are permitted. But only a few banks like SBI Net Banking offer this. Private banks like ICICI, HDFC, etc do not offer this facility.
For example:
SBI Cards IPO is a main-board IPO of 137,193,464 equity shares of the face value of ₹10 aggregating up to ₹10,354.77 Crores.
The issue price of the IPO is ₹750 to ₹755 Per Equity Share. The minimum order quantity is 19 Shares per application and the offer type is Book Built Issue.
The IPO opens on Mar 2, 2020 and closes on Mar 5, 2020.
Link Intime India Private Ltd is the registrar for the IPO. The shares are proposed to be listed on BSE, NSE.
The SBI Cards IPO opens on Mar 2, 2020 and closes on Mar 5, 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 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.
SBI Cards IPO lot size is 19 Shares and the minimum order quantity is 19 Shares.
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