SBI Cards IPO Review, Dates, Allotment, Size, Live Bid Details, GMP & RHP

Let’s have a detailed review of the company and analytics of the SBI Cards IPO release date, IPO offer price, subscription, SBI Cards IPO allotment, grey market price and other details like the SBI Cards and Payment Services Private Limited – company background, its financial positions, its promoters and other related information.

Face Value Rs 10
Price Band Rs X
Listing At BSE, NSE
Min. Order Quantity NA
Listing Date NA
Offer for Sale 130,526,798
Fresh Issue Rs 5000 million

SBI Cards IPO Review & Ratings

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 ★★★★☆

Summary of SBI Cards IPO

SBI Cards IPOThey 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.

And a 17.1% and 17.9% market share of the Indian credit card market in terms of total credit card spends in fiscal 2019 and in the six months ended September 30, 2019, respectively, according to the RBI.

From FY 2015-16 to FY 2018-2019, as per the Restated Financial Statements

They have established a proven track record of consistently generating profits over the past three fiscal years. The total income increased from Rs.34,710.38 million in fiscal 2017 to Rs.72,868.34 million in fiscal 2019 at a CAGR of 44.9% and their revenues from operations have increased from Rs.33,462.03 million in fiscal 2017 to Rs.69,991.11 million in fiscal 2019 at a CAGR of 44.6%.

Their net profit increased from Rs.3,728.59 million in fiscal 2017 to Rs.8,627.19 million in fiscal 2019 at a CAGR of 52.1%. The ROAE has remained stable at 28.5% in fiscal 2017 and 28.4% in fiscal 2019, while their ROAA increased from 4.0% in fiscal 2017 to 4.8% in fiscal 2019.

The Promoters of this company are STATE BANK OF INDIA. The lead manager to the issue are Kotak Mahindra Capital Company Limited, Axis Capital Limited, DSP Merrill Lynch Limited, HSBC Securities and Capital Markets (India) Private Limited, SBI Capital Markets Limited*, Nomura Financial Advisory and Securities (India) Private Limited and the Registrar to this issue is Link Intime India Private Limited.



SBI Cards IPO Dates / Launch Date

The opening and the closing date of SBI Cards IPO is not known yet.


SBI Cards IPO Subscription / Bid Details (BSE+NSE)

Day / Date QIB NII RII Employee Total Subscription
1st Day – 
2nd Day – 
3rd Day – 
Shares Offered or Net Issue

The shares subscribed by the public will be updated herein on a daily basis, once the IPO is open for subscription.


SBI Cards IPO Allotment Status

Here, you can find the Allotment Status of this IPO. Allotment of Equity Shares pursuant to the Fresh Issue and transfer of the Offered Shares of the Promoter Selling Shareholders pursuant to the Offer for Sale to the successful Bidders. However, the Allotment status is not yet disclosed.

SBI Cards IPO Listing Date

Find the dates below on basis of allotment, refund, listing and more:

Basis of Allotment Finalization
Refunds Initiation
Credit of Shares to Demat Account
Share Listing Date

SBI Cards IPO Price Band / Cash Price

The face value of each share is Rs.10,and the cash price of the IPO is not yet disclosed. 


SBI Cards IPO Size / Share Offering

Initial public offering of Upto X Equity Shares of Face Value of Rs.10/- each for Cash at a Price of Rs.[●] Per Equity Share (Including a Share Premium of Rs.[●] per Equity Share) aggregating to Rs.[●] Millions.


SBI Cards and Payment Services Private Limited – Company Overview

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 SBI card pay a payment feature based on HCE Technology (Host Card Emulation).

SBI Cards Technology and Database

Their business is technology-driven and underpinned by their data analytics capabilities, which cut across all aspects of their operations. Their core technology systems are scalable, modern and sophisticated, with considerable capacity to support their future growth.

They possess a large database of cardholder demographic and socio-economic data (such as their cardholders’ purchase patterns, behaviors and payment histories) derived from the numerous transactions carried out by millions of cardholders each year, which they analyze to generate underwriting scorecards, proactively mitigate risks, and reduce losses and delinquencies.

SBI Cards Revenue Model

They have a diversified revenue model whereby they generate both non-interest income (primarily comprised of feebased income such as interchange fees, late fees and annual fees, among others) as well as interest income on their credit card receivables. The share of their revenue from operations that they derive from non-interest income has steadily increased over the past three fiscal years, from 43.6% in fiscal 2017 to 48.9% in fiscal 2019.

SBI Cards Networking & Multiple Channels

They deploy a sales force of 33,086 outsourced sales personnel as of September 30, 2019 operating out of 133 Indian cities and which engages prospective customers through multiple channels, including physical points of sale in bank branches, retail stores, malls, fuel stations, railway stations, airports, corporate parks and offices, as well as through tele-sales, online channels, email, SMS marketing and mobile applications.

In addition, their partnership with SBI provides them with access to SBI’s extensive network of 22,007 branches across India, which enables them to market their credit cards to SBI’s vast customer base of 436.4 million customers as of March 31, 2019.

SBI Cards IPO GDP growth rate

Business strategies of SBI Cards:

  • Continued expansion of portfolio
  • Enhance productivity and operational efficiencies
  • Optimizing the value of their asset portfolio through an efficient capital structure

SBI Cards Limited – Financial Statements

A quick look into the past financial performance of the company to understand its performance of business and evaluate the growth prospectus:

SBI Cards IPO Financial Summary

On the basis of Standalone statement:

Amount (in INR & million) 
September
30, 2019
September
30, 2018
March 31,
2019
March 31,
2018
March 31,
2017
Total Assets 244,591.43 176,035.04 202,396.34 156,860.02 107,649.85
Total Revenue 46,772.08 33,422.74 72,868.34 53,701.92 34,710.38
Total Expense 36,426.23 27,623.98 59,552.35 44,508.47 28,994.15
Profit After Tax 7,258.82 3,766.10 8,627.19 6,011.43 3,728.59
EBITDA 1 7,037.82 1 0,826.19 2 4,299.10 16,553.49 11,048.47

Earnings per Equity Share (in Rs.million)

September
30, 2019
September
30, 2018
March 31,
2019
March 31,
2018
March 31,
2017
Basic & Diluted 7.79 4.20 9.43 7.40 4.75

From the above statements, one could find that the SBI Cards and Payment Services Limited may perform well.


SBI Cards IPO – Promoters

The Promoters of this IPO are:

  • State Bank of India

List of Related Parties (Key Managerial Personnel)

  • Mr. Hardayal Prasad, MD and CEO
  • Mr. Vijay Jasuja, CEO

SBI CARDS IPO – Details of shareholding:

The State Bank of India holds around 74% of equity shares and CA Rover Holdings holds around 26% equity share.
SBI CARDS Details of shareholding

Interest in promotion of the Company

Their Directors have no interest in the promotion or formation of their Company as on the date of this Draft Red Herring Prospectus. However, their Promoter, SBI has nominated four nominee Directors on their Board, pursuant to the terms of the SHA.

Property Interest

Their Directors have no interest in any property acquired or proposed to be acquired by their Company.

Interest in Intellectual Rights of the Company

Promoters has not shown any interest in acquiring the intellectual rights of the company.


SBI Cards IPO Offer Details or Issue Details

Particulars  No. Of Equity Shares
 Equity Shares Offered 
Up to [●] Equity Share aggregating up to Rs.million
 Of which:
Fresh Issue Up to [●]Equity Share aggregating up to Rs.5,000 million
Offer for Sale Up to 130,526,798 Equity Shares aggregating up to Rs.million by the Promoter Selling Shareholder
 QIB Portion Upto Equity Share of face value of Rs.10/- 
 Of which
Anchor Investor Portion
Up to [●] Equity Shares
Balance available for allocation to QIBs other than Anchor Investors (assuming Anchor Investor Portion is fully subscribed  [●] Equity Share
 Of which
Available for allocation to Mutual Funds only (5%of the QIB Portion (excluding the Anchor Investor Portion)
[●] Equity Shares
Balance of QIB Portion for all QIBs including Mutual Fund
Non- Institutional Portion
Not more than [●] Equity Shares
Retail Portion
Not more than [●] Equity Share
 Equity Shares outstanding prior to the Issue 932,334,278 Equity Shares
 Equity Shares outstanding after the Issue [●] Equity Shares

SBI Cards IPO Issue Object

These are the IPO Issue Objects of the company:

  • 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. Their Company will not receive any proceeds from the Offer for Sale.

SBI Cards IPO – Basis of the Offer Price

The issue price is determined by the company in consultation with the Lead manager on the basis of the following qualitative and quantitative factors.

Qualitative factors are:

  • Second largest credit card issuer in India with deep industry expertise and a demonstrated track record of
    growth and profitability
  • Diversified customer acquisition capabilities
  • Supported by a strong brand and pre-eminent promoter
  • Diversified portfolio of credit card offerings
  • Advanced risk management and data analytics capabilities
  • Modern and scalable technology infrastructure
  • Highly experienced and professional management team

The relevant quantitative factors are:

Basic & Diluted EPS RONW in % NAV (Rs.)
31-Mar-17 4.75 26.00
31-Mar-18 7.40 25.00
31-Mar-19 9.43 24.00 46.99
  • Price to Earnings (P/E) ratio in relation to Price band of Rs.[●] to Rs.[●] per Equity Share
Particulars P/E ratio
Highest 152.50
Average 35.14
Lowest (8.87)

Competitive Peers of SBI Cards and Payment Services Limited

Below are listed companies in India that engage in a business similar to that of their Company.

SBI CARDS IPO GREY MARKET


SBI Cards IPO Lead Managers to the Issue

Lead Managers
Kotak Mahindra Capital Company Limited,
Axis Capital Limited,
DSP Merrill Lynch Limited,
HSBC Securities and Capital Markets (India) Private Limited,
SBI Capital Markets Limited*,
Nomura Financial Advisory and Securities (India) Private Limited

SBI Cards IPO Registrar to offer

Registrar to the Offer
Link Intime India Private Limited
C-101, 1st Floor, 247 Park
Lal Bahadur Shastri Marg, Vikhroli (West)
Mumbai – 400 083
Maharashtra, India
Telephone: +91 22 4918 6200
Email:
Website: www.linkintime.co.in
Contact Person: Shanti Goplakrishnan
SEBI Registration No: INR000004058

Other Details:

  • Statutory Auditor – S. Ramanand Aiyar & Co,
  • Legal Counsel to the Company – Shardul Amarchand Mangaldas & Co
  • Bankers to the Company – NA

SBI Cards IPO Review by Top 10 Stock Brokers

Top Stock Brokers Review Company Reputation Competitive Edge Financial Statement Popularity Index Promoters Reputation
Angel Broking 8.5/10 8.1/10 8.5/10 7.3/10 7.5/10
Sharekhan 8.6/10 8.3/10 8.6/10 8.5/10 8.1/10
Kotak Securities 7.3/10 7.5/10 7.5/10 8.1/10 7.3/10
ICICI Direct 8.5/10 8.1/10 8.1/10 8.0/10 7.1/10
IIFL 8.6/10 8.1/10 7.3/10 7.5/10 7.1/10
Edelweiss 7.5/10 7.4/10 8.5/10 8.1/10 7.2/10
Zerodha 7.4/10 7.1/10 7.1/10 8.1/10 7.0/10
5Paisa 8.5/10 8.1/10 8.4/10 7.3/10 7.5/10
Karvy 8.6/10 8.1/10 7.2/10 8.5/10 8.1/10
Motilal Oswal 7.1/10 7.1/10 8.6/10 8.3/10 7.2/10

SBI Cards IPO Grey Market Premium

The SBI Cards IPO Grey Market Premium price is Rs.185-190 (Only buyers, No Sellers), and the Subject to Sauda is Rs.0. Application for Rs. 600 confirmed.


Subscribe to SBI Cards IPO

Fill the Details Below
  1. Subscribe to IPOOpen Demat Account


SBI Cards IPO News

News 1 – IPO ISSUE OPENS SOON [DRHP Prospectus]

News 2 –  [Download RHP Prospectus]


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