When will SBI Cards IPO open?

The IPO will open for subscription from March 2-5. The shares will be credited to investors’ demat account on or around March 13. Read more

What is SBI Cards shares listing date?

Shares of the company will be listed on BSE and NSE both on or around March 16, according to the red herring prospectus. Read more

Who are book running lead managers of SBI Cards IPO?

Kotak Mahindra Capital, Axis Capital, BofA Securities, HSBC, Nomura, SBI Capital Markets are the book running lead managers to the issue. Read more

What is the issue size of SBI Cards IPO?

The company plans to issue new shares worth Rs 500 crore and will offer up to 13.05 crore shares as offer for sale, according to the prospectus. Read more

What are SBI Cards strengths?

Second largest credit card issuer in India with deep industry expertise and a demonstrated track record of growth and profitability Read more

Overview of credit card industry

Credit card industry intends to grow 2.5 times in the next five years. Credit card spends have registered a robust growth, read more

What is the price band for SBI Cards IPO?

SBI said the price band of upcoming IPO of SBI Cards and Payment Services has been fixed in the price range of Rs 750-755 per share. At the higher end of the price band, the SBI Cards IPO is expected to raise around Rs 9,000 crore, making it the fifth-largest IPO so far.

SBI Cards IPO to open on March 2: Everything you need to know

Shares of SBI Cards will be listed on BSE and NSE both on or around March 16.

By ETMarkets.com | Updated: Feb 26, 2020, 01.58 PM IST

The company plans to issue new shares worth Rs 500 crore and will offer up to 13.05 crore shares as offer for sale, according to the prospectus.

SBI Cards and Payment Services initial public offering (IPO) will hit the capital market during the first week of March. The company is the second-largest credit card issuer in India with nearly 18 per cent market share.

Below are key things that you need to know about SBI Cards IPO:

When will SBI Cards IPO open?
The IPO will open for subscription from March 2-5. The shares will be credited to investors’ demat account on or around March 13.
What is SBI Cards shares listing date?
Shares of the company will be listed on BSE and NSE both on or around March 16, according to the red herring prospectus.
Who are book running lead managers of SBI Cards IPO?
Kotak Mahindra Capital, Axis Capital, BofA Securities, HSBC, Nomura, SBI Capital Markets are the book running lead managers to the issue.
What is the issue size of SBI Cards IPO?
The company plans to issue new shares worth Rs 500 crore and will offer up to 13.05 crore shares as offer for sale, according to the prospectus.
What is the price band for SBI Cards IPO?
SBI said the price band of upcoming IPO of SBI Cards and Payment Services has been fixed in the price range of Rs 750-755 per share. At the higher end of the price band, the SBI Cards IPO is expected to raise around Rs 9,000 crore, making it the fifth-largest IPO so far.
What are SBI Cards strengths?
- Second largest credit card issuer in India with deep industry expertise and a demonstrated track record of growth and profitability
- Diversified customer acquisition capabilities
- Support of 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
- Overview of credit card industry
  Credit card industry intends to grow 2.5 times in the next five years. Credit card spends have registered a robust growth, growing at a CAGR of 32 per cent from fiscal 2015 to fiscal 2019 to reach Rs 6 lakh crore as of fiscal 2019, and is expected to grow at a healthy rate to reach Rs 15 lakh crore as of fiscal 2024, which is 2.5 times over fiscal 2019, according to CRISIL Research.
  
  SBI Card IPO: Why is it being seen as a hot cake?
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  SBI Cards and Payment Services, a subsidiary of the State Bank of India (SBI), will hit the primary market with a Rs 10,350 crore initial public offering on March 2. The IPO will be the fifth biggest in India so far. With investor interest already high in the IPO, we bring you all the details you need to know before hitting 'subscribe' on the issue:
  
  (With inputs from Yes Securities and Axis Capital)
  SBI Cards and Payment Services, a subsidiary of the State Bank of India (SBI), will hit the primary market with a Rs 10,350 crore initial public offering on March 2. The IPO will be the fifth biggest..
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  SBI Cards is the second-largest credit card issuer in India, having a market share of 18.1% in terms of the number of credit cards outstanding as of November 30, 2019. The firm was incorporated on May 15, 1998. It is engaged in the business of issuing credit cards to consumers in India. It is incorporated as a joint venture between State Bank of India and GE Capital Mauritius Overseas Investment.
  
  SBI Cards is the second-largest credit card issuer in India, having a market share of 18.1% in terms of the number of credit cards outstanding as of November 30, 2019. The firm was incorporated on Ma..
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  The company has a diversified revenue model whereby it generates both non-interest income as well as interest income on its credit card receivables. The share of revenue from operations that the company derives from non-interest income has steadily increased over the past three fiscal years, from 43.6 per cent in FY17 to 48.9 per cent in FY19, YES Securities said in a report. The company’s total income increased from Rs 34,71 crore in FY17 to Rs 7,286.80 crore in FY19 at a CAGR of 44.9 per cent and its revenues from operations increased from Rs 3,346.20 crore in FY17 to Rs 6,999.10 crore in FY19 at a CAGR of 44.6 per cent. Net profit increased from Rs 372.90 crore in FY17 to Rs 862.7 crore in FY19 at a CAGR of 52.1 per cent. According to a Crisil report, the company is a leading player in open market customer acquisition in India. It had a presence in 3,190 open market points of sale across the country as of 9M FY20.
  
  The company has a diversified revenue model whereby it generates both non-interest income as well as interest income on its credit card receivables. The share of revenue from operations that the comp..
  Read More
  >> Second largest credit card issuer in India with deep industry expertise and a demonstrated track record of growth and profitability.
  >> Diversified customer acquisition capabilities.
  >> Support of 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.
  
  >> Second largest credit card issuer in India with deep industry expertise and a demonstrated track record of growth and profitability. >> Diversified customer acquisition capabilities. >> Support of..
  Read More
  The company derives substantial benefits from its existing relationship with its promoter, and a loss or reduction in the level of support it receives from its promoter could adversely affect the company. In FY19, new accounts acquired from its promoter’s customer base accounted for 55.2% of the company’s total new accounts. The promoter has extended working capital loans and non-convertible debentures to the company.
  
  The company derives substantial benefits from its existing relationship with its promoter, and a loss or reduction in the level of support it receives from its promoter could adversely affect the com..
  Read More
  The company is involved in an appeal against an order given by National Consumer Disputes Resolution Redressal Commission regarding charging interest rate in excess of 30% per annum from credit cardholders. If the Supreme Court of India upholds the order of the National Commission, this may adversely impact the company and all credit card issuing companies by capping the interest rate charged from credit card holders, thereby having a negative impact on the revenue lines of the company.
  
  The company is involved in an appeal against an order given by National Consumer Disputes Resolution Redressal Commission regarding charging interest rate in excess of 30% per annum from credit cardh..
  Read More
  Issue Size: Rs 10,350 crore
  Offer for sale: Rs 9,850 crore
  Fresh Issue: Rs 500 crore
  Post-issue m-cap: Rs 70,900 crore
  Book-running lead managers: Kotak Bank, Axis Bank, BofA, HSBC
  Listing: NSE, BSE
  IPO Price: Rs 750-755
  IPO Dates: March 2-5
  
  Issue Size: Rs 10,350 crore Offer for sale: Rs 9,850 crore Fresh Issue: Rs 500 crore Post-issue m-cap: Rs 70,900 crore Book-running lead managers: Kotak Bank, Axis Bank, BofA, HSBC Listing: NSE, BSE ..
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