SBI Cards and Payment Services Private Limited was incorporated in 1998 as joint venture between State Bank of India (SBI) and GE Capital Corporation. On December 15 2017, GE Capital Mauritius Overseas Investment (GECMOI shareholder holding GE Capital shareholding) sold its 40% stake in the Company to State Bank of India (14%) and CA Rover Holdings (26%). Presently, State Bank of India holds 74% and CA rover Holdings (Group Company of Carlyle) holds 26% stake in the Company.
Headquartered in Gurgaon, the Company is one of the leading credit card issuers in India. Besides the corporate office & registered office, it has 14 branches across the country.
According to the RBI, as of March 2019, SBI Cards was ranked 2nd behind leader HDFC Bank with the credit card base and credit card spends capturing 17.6% and 17.1% market share in the respective categories.
SBI Cards had a credit card base of about 8.27 million as of March 2019, clocking a growth of 32.2% on March 2018’s base of 6.26 million. Annual spends on its credit cards (excluding cross-sell) stood at Rs 1,03,170 crore, an increase of 34.9% year-on-year.
The company has products catering to multiple segments ranging from SimplySave credit card for the masses, SimplyClick for the online savvy, Elite & Prime products for the affluent, and Doctors Card for medical practitioners.
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It has co-branded cards in segments like travel (Etihad, IRCTC, Air-India), e-commerce (Yatra, OLA), lifestyle (Central, Tata & FBB), healthcare (Apollo), fuel (Bharat Petroleum), metro (Chennai, Mumbai) and banking partnerships (Oriental Bank of Commerce, Bank of Maharashtra, Lakshmi Vilas Bank, Federal Bank, South Indian Bank, Karnataka Bank, Allahabad Bank & Karur Vysya Bank).
Competitive Strengths
- 2nd largest credit card issuer in India with a strong track record of growth and profitability.
- Leading player in open market customer acquisitions using physical and digital channels in India.
- A well-known promoter in SBI with strong brand recognition.
- Diversified credit card portfolio and partnerships with leading brands across industries.
SBI Cards IPO Details
| 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 |
SBI Cards IPO Date / Timetable
| 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 |
SBI Cards IPO Lot Size and Price (Retail)
| Application | Lots | Shares | Amount (Cut-off) |
|---|---|---|---|
| Minimum | 1 | 19 | ₹14,345 |
| Maximum | 13 | 247 | ₹186,485 |
SBI Shareholders Reservation in SBI Cards IPO
Investors who hold SBI shares on the cut-off date (the date of filing RHP with SEBI) are eligible to apply under the shareholder’s category of SBI Cards IPO. As per SEBI, the maximum limit defined for the ‘retail individual shareholders to apply in shareholder category is ₹2 lakhs. 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).
SBI Employees Reservation in SBI Cards IPO
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.
How to apply for an IPO under shareholders quota through the Zerodha Console?
Here are the steps to apply under shareholder category through Zerodha Console:
- Login to Zerodha Console
- Click on Portfolio tab
- Choose ‘IPO’ from the drop-down list
- Select the IPO you want to invest
- Enter your UPI ID and verify the details
- Select the Investor Type as ‘Share Holding Category’
- Put Bid and Price in the box
- Tick on the checkbox
- Click on Submit button
When SBI Cards IPO will open?
The SBI Cards IPO dates are Mar 2, 2020 – Mar 5, 2020.
How to apply for SBI Cards IPO?
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.
SBI Cards IPO Allotment Status
The finalization of Basis of Allotment for SBI Cards IPO will be done on 11th March 2020, and the allotted shares will be credited to your demat account by 13th March 2020. Check the SBI Cards IPO allotment status.