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Summary of SBI Cards IPO

SBI Cards IPO: Issue to open on March 2; price band likely at Rs 745-775

SBI Cards IPO: The firm plans to issue fresh shares worth Rs 500 crore and offer up to 13.05 billion shares for sale. Bidding process for the IPO will close on March 5

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 company’s background, its financial positions, its promoters and other related things.

 

Do you know they 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.

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.

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

 

Face Value Rs 10
Price Band Rs 750-755
Listing At BSE/ NSE
Min. Order Quantity
Listing Date2 2March 2020
Offer for Sale 130,526,798
Fresh Issue Rs 5000 million

Eligibility for applying in SBI Shareholders Quota

  • SBI Shareholders i.e. individuals and HUFs who are equity shareholders of SBI can only apply.
  • The person on whose name the IPO application is made needs to be an SBI shareholder. Any other individual cannot apply in this category.

Maximum Eligible Bidding Limit in SBI Shareholders Quota

Scenario Maximum Eligible Bidding Limit
1 Applying only in Shareholders Category (as retail individual shareholder) ₹200,000 in Shareholders *
2 Applying Shareholders and Retail Category Both ₹200,000 in Shareholders

₹200,000 in Retail

3 Applying in:

Shareholders Category

RII Category

Employee Category

 

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.

If applying in multiple categories, the maximum limit will be as below:

 

Ø  Category Ø  Maximum Limit
Ø  Employee Category Ø  Maximum ₹5 Lakhs
Ø  Shareholders Category Ø  Maximum ₹2 Lakhs
Ø  General Category Ø  Maximum ₹2 Lakhs

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

 

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

 

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

 

Note:

  • Investors Portion: QIB = Not More than 50% of the offer, NII = Not less than 15% of the offer and Retail = Not less than 35% of the offer
  • Employee Reservation Portion: Up to 1,864,669 Equity Shares
  • Shareholders Reservation Portion: Up to 13,052,680 Equity Shares
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