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SBI Cards IPO is a book built issue of Rs 10,354.77 crores. The issue is a combination of fresh issue of 0.66 crore shares aggregating to Rs 500.00 crores and offer for sale of 13.05 crore shares aggregating to Rs 9,854.77 crores.
SBI Cards IPO bidding started from March 2, 2020 and ended on March 5, 2020. The allotment for SBI Cards IPO was finalized on Wednesday, March 11, 2020. The shares got listed on BSE, NSE on March 16, 2020.
SBI Cards IPO price band is set at ₹750 to ₹755 per share. The minimum lot size for an application is 19 Shares. The minimum amount of investment required by retail investors is ₹14,345.
The issue includes a reservation of up to 1,864,669 shares for employees offered at a discount of Rs 75 to the issue price.
Axis Capital Limited, Bofa Securities India Limited, Hsbc Securities & Capital Markets Pvt Ltd, Kotak Mahindra Capital Company Limited, Nomura Financial Advisory And Securities (India) Pvt Ltd and SBI Capital Markets Limited are the book running lead managers of the SBI Cards IPO, while Link Intime India Private Ltd is the registrar for the issue.
Refer to SBI Cards IPO RHP for detailed information.
| IPO Date | March 2, 2020 to March 5, 2020 |
| Listing Date | March 16, 2020 |
| Face Value | ₹10 per share |
| Price Band | ₹750 to ₹755 per share |
| Lot Size | 19 Shares |
| Total Issue Size | 137,193,464 shares (aggregating up to ₹10,354.77 Cr) |
| Fresh Issue | 6,622,517 shares (aggregating up to ₹500.00 Cr) |
| Offer for Sale | 130,526,798 shares of ₹10 (aggregating up to ₹9,854.77 Cr) |
| Employee Discount | Rs 75 per share |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Share holding pre issue | 932,334,278 |
| Share holding post issue | 938,956,794 |
SBI Cards IPO offers 100,279,411 shares. 24,224,003 (24.16%) to QIB, 18,341,418 (18.29%) to NII, 42,796,641 (42.68%) to RII, 1,864,669 (1.86%) to employees. 2,252,454 RIIs will receive minimum 19 shares and (sNII) and (bNII) will receive minimum 266 shares. (in case of oversubscription)
| Investor Category | Shares Offered | Maximum Allottees |
|---|---|---|
| Anchor Investor Shares Offered | - | NA |
| QIB Shares Offered | 24,224,003 (24.16%) | NA |
| NII (HNI) Shares Offered | 18,341,418 (18.29%) | |
| Retail Shares Offered | 42,796,641 (42.68%) | 2,252,454 |
| Employee Shares Offered | 1,864,669 (1.86%) | NA | Other Shares Offered | 13,052,680 (13.02%) | NA |
| Total Shares Offered | 100,279,411 (100%) |
SBI Cards IPO opens on March 2, 2020, and closes on March 5, 2020.
| IPO Open Date | Monday, March 2, 2020 |
| IPO Close Date | Thursday, March 5, 2020 |
| Basis of Allotment | Wednesday, March 11, 2020 |
| Initiation of Refunds | Thursday, March 12, 2020 |
| Credit of Shares to Demat | Friday, March 13, 2020 |
| Listing Date | Monday, March 16, 2020 |
| Cut-off time for UPI mandate confirmation | 5 PM on March 5, 2020 |
Investors can bid for a minimum of 19 shares and in multiples thereof. The below table depicts the minimum and maximum investment by retail investors and HNI in terms of shares and amount.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 19 | ₹14,345 |
| Retail (Max) | 13 | 247 | ₹186,485 |
| Lot Size Calculator | |||
The promoter of the Company is SBI.
| Share Holding Pre Issue | 74% |
| Share Holding Post Issue | 69.51% |
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.
| Particulars | For the year/period ended (Rs 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 market capitalization of SBI Cards IPO is Rs 70890 Cr.
| Pre IPO | Post IPO | |
|---|---|---|
| P/E (x) | 45.8 |
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.
[Dilip Davda] SBI Card enjoys fancy due to parent SBI's credentials. Being a second-largest plastic money player in a growing economy like India and the first mover in the segment to get listed, it may continue to generate high interest going forward. Although the issue appears fully priced, investors may consider investment for short to long term rewards. Read detail review...
The SBI Cards IPO is subscribed 26.54 times on March 5, 2020 6:45:03 PM. The public issue subscribed 2.50 times in the retail category, 57.18 times in the QIB category, and 45.23 times in the NII category. Check Day by Day Subscription Details (Live Status)
| Category | Subscription (times) |
|---|---|
| QIB | 57.18 |
| NII | 45.23 |
| Retail | 2.50 |
| Employee | 4.74 |
| Others | 25.36 |
| Total | 26.54 |
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 Rs 2 lakh and maximum up to reserved poprtion for the SH category. SBI shareholders (bidding up to Rs 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 Rs 2 lakhs), Shareholder (up to Rs 2 lakhs) and Employees (up to Rs 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 Rs 5 lakhs. The maximum allotment to employees cannot be above Rs 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 Rs 2 lakhs, subject to maximum limit not exceeding Rs 5 lakhs.
Continue reading about SBI Cards IPO Employees Application - Explained
Note:
| Listing Date | March 16, 2020 |
| BSE Script Code | 543066 |
| NSE Symbol | SBICARD |
| ISIN | INE018E01016 |
| Final Issue Price | ₹755 per share |
| Price Details |
|---|
| Final Issue Price |
| Open |
| Low |
| High |
| Last Trade |
| BSE |
|---|
| ₹755.00 |
| ₹658.00 |
| ₹658.00 |
| ₹755.00 |
| ₹683.20 |
| NSE |
|---|
| ₹755.00 |
| ₹661.00 |
| ₹656.00 |
| ₹755.00 |
| ₹681.40 |
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
Phone: +91-22-4918 6270
Email: sbicard.ipo@linkintime.co.in
Website: https://linkintime.co.in/initial_offer/public-issues.html
Lead Manager Reports
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:
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 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:
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:
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 < 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:
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 is priced at ₹750 to ₹755 per share. The minimum order quantity is 19 Shares.
The IPO opens on March 2, 2020, and closes on March 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 March 2, 2020 and closes on March 5, 2020.
SBI Cards IPO lot size is 19 Shares, and the minimum amount required is ₹14,345.
You can apply in SBI Cards IPO online using either UPI or ASBA as payment method. ASBA IPO application is available in the net banking of your bank account. UPI IPO application is offered by brokers who don't offer banking services. Read more detail about apply IPO online through Zerodha, Upstox, 5Paisa, Nuvama, ICICI Bank, HDFC Bank and SBI Bank.
The finalization of Basis of Allotment for SBI Cards IPO will be done on Wednesday, March 11, 2020, and the allotted shares will be credited to your demat account by Friday, March 13, 2020. Check the SBI Cards IPO allotment status.
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Still my locked money for SBI cards has not credited. Any idea why it is still pending.
Or only i have this issue am not sure.
Please help. I have ICICIdirect account.