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SBI Cards IPO Details
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SBI Card
8.8
Pros
- Good Company Record
- Good Finance
- Rated AAA by CRISIL
Cons
- Economic Slowdown
Are you looking forward to investing in SBI Card IPO? Proceed smartly by reviewing the SBI Card IPO Details.
Once you have an SBI Free Demat Account, you can make an investment in IPO. Let’s know about SBI Cards IPO Details.
The upcoming IPO for SBI is coming with many benefits. Dive in to grab its complete information
Also, know what is the date of SBI card IPO and how to apply for SBI card IPO
SBI Credit Card IPO Details
SBI Cards and Payment Services Limited is the subsidiary of SBI. It was incorporated in 1998.
It has around 18% market share, that makes it the second-largest credit card issuer in the country.
SBI Cards offers a wide range of credit cards to individuals and corporate clients including lifestyle, rewards, shopping, travel, fuel, banking partnership and many more.
For IPO, SBI Card filed Draft Red Herring Prospectus (DRHP) with SEBI on November 27, 2019.
With much anticipation ₹9,000-crore IPO of SBI Cards is opening on March 02, 2020.
Here are the SBI Card IPO Details in brief.
| SBI Card IPO Details | |
| IPO Date | Start Date: 02 March, 2020 |
| End Date: 05 March, 2020 | |
| Issue Type | Book Built Issue IPO |
| Issue Size | 137,193,464 Equity Share of ₹10 |
| Fresh Issue | 6,622,517 Equity Share of ₹10 |
| Offer for Sale | 130,526,798 Equity Share of ₹10 |
| Face Value | ₹10 per equity share |
| IPO Price | ₹750 to ₹755 Per Equity Share |
| Discount for Employee | ₹75 per share |
| Market Lot | Minimum: 19 shares (Amount: ₹14,345) |
| Maximum: 247 shares (Amount: ₹186,485) | |
| Minimum Order Quantity | 19 shares |
| Listing At | BSE, NSE |
| Listing Date | March 16, 2020 |
| P/E (x) | 45.8 |
| Promoter Holding | Pre Issue Share Holding: 74% |
| Post Issue Share Holding: 69.51% | |
| Market Cap | ₹70890 Crores |
| Reserved Shares | For employees: 1,864,669 |
| For SBI Shareholders: 13,052, 680 |
With the upcoming IPO, the company will offer 130,526,798 equity shares through the sale route offer.
Since SBI holds 76% in SBI Cards while the rest is held by Carlyle Group, the equity share will include the share sale of 37,293,371 by SBI and up to 93,233,427 shares by Carlyle Group (CA Rover).
Along with this, the company will offer a fresh equity share of ₹500 crores.
Considering the price range for SBI IPO, it has been fixed at ₹750-755 per share.
SBI Cards IPO lot size or say the minimum number of shares that are to be subscribed is fixed at 19 shares.
It has reserved up to 1,864,669 shares for employees of the company and 13,052, 680 for SBI shareholders.
Also, SBI will offer a discount of ₹75 per share to the eligible employees in the regulatory filing.
Other than these values there are the top financial institutions advising SBI Cards on IPO. Here is the list of those institutes:
- Bank of America Securities
- Axis Bank
- Kotak Investment Banking
- HSBC
- Nomura
According to the Wall Street Journal Report, the SBI Cards shares are expected to be listed on BSE on March 16.
Also Read:
Bottom Line
SBI Cards is rated as AAA and A1+ bu CRISIL and ICRA respectively. As per the report of CRISIL, SBI Cards will be the leading player in open market customer acquisition in India.
Also, the company is the second-largest card service provider after HDFC. However, there is a certain risk associated with credit card industry like:
- Rising of e-wallets and UPI services for small transactions.
- Economic slowdown
It is good to do an in-depth analysis before investing your savings in the IPO.
Have you applied for the IPO, then check for the SBI Card IPO allotment status.
In case, you are looking forward to learn more, feel free to contact us.