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.
|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
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
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|
On the basis of Standalone statement:
|Amount (in INR & million)|
|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|
|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:
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|
|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/-|
|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|
|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|