SBI Cards and Payment Services Ltd IPO (SBI Cards IPO) Detail

SBI Cards & Payment Services Ltd is coming up with an initial public offer of around Rs 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 Rs 5L under employee quota in addition to Rs 2L in retail and Rs 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:

1. ASBA Payment Method (Net Banking)

   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.

2. UPI Payment Method

   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.

SBI Cards IPO lot size is 19 shares and prince band is Rs 750 to Rs 755.

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 Rs 200,000 in shareholders category.

Please note an eligible SBI shareholder bidding in SBI shareholder reservation portion (subject to bid amount not exceeding Rs 2,00,000 under SBI shareholder reservation portion) may also bid under net offer i.e. either in Retail Individual Bidders Portion for upto Rs 200,000 OR in Non-Institutional Bidders Portion such that the Bid Amount exceeds Rs 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 Rs 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:

1. Shareholders Category: Rs 200,000
2. Retail Category: Any amount (Considered as RII or NII based on the amount)

An eligible SBI shareholder bidding in SBI shareholder reservation portion (subject to bid amount not exceeding Rs 2,00,000 under SBI shareholder reservation portion) may also bid under net offer i.e. either in Retail Individual Bidders Portion for upto Rs 200,000 OR in Non-Institutional Bidders Portion such that the Bid Amount exceeds Rs 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 Rs 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:

• An Eligible Shareholder holding multiple Demat accounts makes multiple applications under shareholders category with the same PAN number.
• An Eligible Shareholder, being the first holder of a joint Demat account makes multiple applications individually and jointly.
• ASBA Bidders submitting more than one ASBA Form per ASBA Account

Eligible Employees can bid under all 3 categories of SBI Card IPO:

• Retail Category (any amount*)
• Shareholder Category (< Rs 2L)
• Employee Category (<Rs 5L)

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 < Rs 2L is considered as RII and above Rs 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: 

1. Login to Zerodha Console
2. Click on Portfolio tab
3. Choose 'IPO' from the drop-down list
4. Select the IPO you want to invest 
5. Enter your UPI ID and verify the details
6. Put Bid and Price in the box
7. Tick on the checkbox
8. Click on Submit button

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:

• When applying from Zerodha, Edelweiss or Upstox, you cannot apply in SBI Card IPO in the HUF account (or minor account) using UPI linked to your bank account.
• You can apply in HUF, Minor or someone else's demat account using ASBA from SBI Bank who offers up to five(5) 3rd party IPO applications from one bank account.