IPO Status: Closed [2nd Mar 2020 to 5th Mar 2020]
SBI Cards IPO review covers all the information regarding the company like business, objective, strength, weakness, financials, IPO Price, important dates and much more. The SBI Cards IPO opens on 02-Mar-2020 and closes on 05-Mar-2020. The RHP has been filed on 18th Feb 2020, Shareholders quota cut-off date is same as RHP filing date.
The subsidiary of State Bank of India (SBI), SBI Cards and Payment Services Limited is the 2nd largest credit card issuer in India. The company covers the "premium" cardholder category to the "affluent", "mass affluent", "mass" and "new to credit" categories.
The company offers an extensive credit card portfolio to individual cardholders and corporate clients which includes lifestyle, rewards, travel and fuel, shopping, banking partnership cards and corporate cards covering all major cardholder segments in terms of income profiles and lifestyles.
The credit card portfolio of the company includes SBI Card-branded credit cards as well as co-branded credit cards that bear both the SBI Card brand and co-brand partners’ brands. The company offers four primary SBI Card - branded credit cards: SimplySave, Simply Click, Prime and Elite. For co-brand credit cards, the company has partnership with travel, fuel, fashion, healthcare and mobility industries like Air India, Apollo Hospitals, BPCL, Etihad Guest, Fbb, IRCTC, OLA Money and Yatra, among others.
The company offers credit cards in partnership with the Visa, MasterCard and RuPay payment networks.
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% from 2017 to 2019. The net profit increased by a CAGR of 52.1% during this period.
The company has a sales force of 33,086 employees in 133 Indian cities and has access to SBI's network of 22,007 branches across India and their 436.4 million customers to market its products.
The Offer comprises of a Fresh Issue and Offer for Sale-
Reservation of up to 18,64,699 equity shares is available for Eligible Employees on a proportionate basis with employee discount of Rs 75 per share. As per RHP, the Eligible Employees can apply up to Rs 5 lakh for the Employee Reservation Portion. However, the initial Allotment will be of Rs 200,000 in case of full or oversubscribed employee category. In the event of under-subscription, the unsubscribed portion will be allotted proportionately to all Eligible Employees who have Bid above Rs 200,000, subject to the maximum limit not exceeding Rs 500,000.
|Shareholders Reservation Portion||Retail or NII||Employee Reservation Portion|
|Individual Investor||Up to ₹ 2,00,000||Up to ₹ 2,00,000 in Retail or above ₹ 2,00,000 in NII||Up to ₹ 5,00,000|
|Individual Investor||Above ₹ 2,00,000||Not Allowed||Not Allowed|
SBI Cards IPO details includes issue size, issue price, discount information, minimum and maximum order quantity, promoters holding details, NSE and BSE code.
|SBI Cards Issue Details||Values|
|IPO Issue Type||Book Built Issue IPO|
|IPO Issue Size||13,71,49,315 Shares of ₹10 (aggregating up to ₹10,354.77 Cr)|
|Offer for Sale||13,05,26,798 Shares (₹9,854.77 Cr)|
|Fresh Issue||66,22,517 Eq Shares (₹500 Cr)|
|Face Value||₹10 Per Equity Share|
|IPO Issue Price||₹750-₹755|
|IPO Discount||Employees ₹75|
|Market Lot||19 Shares|
|Min Order Qty||19 shares (1 Lot)|
|Max Retail Qty||247 Shares (13 Lots)|
|Promoter Holding Pre IPO||74%|
|Promoter Holding Post IPO||69.51%|
|IPO Listing At||BSE, NSE|
The table below is live update of IPO bidding details from NSE and BSE.
|24224003||18341418||42796641||1864669||13052680||100279411||1||2nd Mar 2020 17:02||0.0009x||0.1229x||0.6236x||0.8026x||0.6889x||0.3934x||2||3rd Mar 2020 17:02||0.214x||0.4729x||1.2124x||1.8418x||1.4063x||0.8729x||3||4th Mar 2020 17:02||57.1847x||2.1893x||1.7701x||3.2916x||3.5428x||15.4921x||4||5th Mar 2020 18:47||57.1847x||45.227x||2.5x||4.7408x||25.3557x||26.5414x|
Past performance and financial results of SBI Cards.
|SBI Cards IPO Financials||30-Sep-2019||31-Mar-2019||31-Mar-2018||31-Mar-2017|
|Total Assets||₹24459.14 Cr||₹20239.63 Cr||₹15686.00 Cr||₹10764.99 Cr|
|Total Expense||₹3642.62 Cr||₹5955.24 Cr||₹4450.85 Cr||₹2899.42 Cr|
|Total Revenue||₹4677.21 Cr||₹7286.83 Cr||₹5370.19 Cr||₹3471.04 Cr|
|Net Profit/Loss||₹725.88 Cr||₹862.72 Cr||₹601.14 Cr||₹372.86 Cr|
In this section we have covered all imporatant dates related to SBI Cards IPO. Dates are updated as they are announced. The most noted dates are IPO start date and IPO end date, which one should use to participate in IPO.
|IPO Issue Open Date||2nd Mar 2020|
|IPO Issue Close Date||5th Mar 2020|
|Basis of Allotment Finalisation Date*||11th Mar 2020|
|Refunds Initiation*||12th Mar 2020|
|Credit of Shares to Demat Account*||13th Mar 2020|
|IPO Listing Date*||16th Mar 2020|
* - Tentative Dates
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SBI Cards IPO Draft Prospectus >>Document
SBI Cards IPO Red Herring Prospectus >>Document
SBI Cards IPO Allotment Status >>Link
Last Updated on 2020-03-15T23:19:01+00:00
Zerodha allows to apply online in IPOs via their back office software "console". UPI payment mode is to be used to apply online through Zerodha. To purchase SBI Cards IPO with Zerodha, you must be Zerodha customer and have UPI payment setup. For more details please visit detailed article Step by Step Guide to apply SBI Cards IPO with Zerodha.
Alternate approch to apply in SBI Cards IPO is ASBA. You can use Zerodha DP information and apply online via ASBA with your prefered net banking user id.
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To subscribe or apply in SBI Cards IPO, you can use the following methods:
|SBI Cards IPO Applying Mode||Method||Details|
|Online Application||3-in-1 Trading Account|
If your broker is 3-in-1 service provider, you can apply in SBI Cards IPO directly with your brokers website. Example HDFC Securities, ICICI Direct, AxisDirect are 3-in-1 brokers provide you direct IPO investment.
|Online Application||2-in-1 Trading Account|
Brokers like Zerodha, TradeSmart Online provides access to applying in SBI Cards IPO with their in-house developed platform. You need to apply in IPO via UPI payment method. You must have access of your UPI mandate to apply in IPO online.
This is one of the most popular mode of applying in SBI Cards IPO. Most of the Syndicate Banks provide access to apply in SBI Cards IPO via ASBA process. You must have your net banking access, DP ID information to apply in SBI Cards IPO via ASBA. Bank like Axis, SBI allows you to apply maximum 5 application from one bank account. However, ICICI, HDFC bank have limit of one IPO ASBA application per account.
|Offline Application||Physical Form|
You can apply in SBI Cards IPO via physical form, but not with ASBA. Physical Forms need to be filled using UPI mode of payment and need to approve the mandate of UPI with your registered phone number with your UPI provider. You can use BHIM app or banks mobile app who support UPI process like SBI, HSBC, Axis, ICICI, HDFC, Yes Bank, Citi Bank mobile app.
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Applying in SBI Cards IPO is very easy and quick process via ASBA. You can use your net banking user id and password to apply in IPO. In case you want to submit physical application, you can download SBI Cards IPO application online and submit to the nearest bank or to your broker. With new mandate from SEBI, all physical application need to use UPI mode of payment. In such case you have to setup UPI and provide your UPI information in physical application. Once your bank receives your application they will use UPI ID to block your money. You will get UPI mandate and need to approve the same to submit your application.
For more details on how to use UPI payment method to apply SBI Cards IPO, please refer article >> Link
Steps to download the online application form for SBI Cards IPO
Other relevant questions:How to fill SBI Cards IPO form? How to fill SBI Cards IPO form online? SBI Cards IPO online form? SBI Cards IPO online form fill up? SBI Cards IPO blank form download? SBI Cards IPO bid form? SBI Cards IPO full form? SBI Cards IPO form nse? SBI Cards IPO form bse? SBI Cards IPO form online? SBI Cards IPO form print? SBI Cards IPO application amount?
SBI Cards IPO is going to be list on 16-03-2020. NSE Code for SBI Cards is SBICARDS. BSE Code for SBI Cards is 543066.
Other relevant questions:When SBI Cards IPO will be listing? SBI Cards IPO NSE listing date?SBI Cards IPO date of listing.SBI Cards IPO BSE listing date?
SBI Cards IPO price for retail investor is ₹750-₹755. Company is also offering special discount for Employees ₹75.
SBI Cards IPO lot size for retail investor is 19 shares (1 Lot)(Min) and 247 Shares (13 Lots) (Max).
Other relevant questions:SBI Cards IPO lot details? SBI Cards IPO market lot? SBI Cards IPO details lot size?
To apply in one application of SBI Cards IPO you need ₹750-₹755(Issue Price) - Employees ₹75 (discount**) X 19 shares (1 Lot) (Minimum Order Qty) =₹14345.
* - Tentative Price
** - Applicable discount on specific category.
When any subsidiary company of a parent company comes with IPO, the parent company reserves shareholding quota for parent company stockholders to give them easy investment options in their subsidiary company as a gift of their loyalty. Thus, 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. In past shareholder cut-off was not for the new investors. But recently, cut-off date is linked with RHP filing date. In such case, lots of new investors will get the chance to enter in IPO via shareholding quota.When applying in IPO, you will get an option for shareholders' quota. In case you are eligible candidate, you must apply in 1-2 lots in the shareholder category. Simultaneously, you can apply 1 lot in the retail category also. As per SBI Cards IPO DRPH, 13,052,680 Equity Shares are reserved for SBI Shareholders on a proportionate basis.
The cut-off date for applying in SBI Cards Shareholder quota is 18 February, 2020 (RHP filing date). In case you are eligible for shareholding quota, you must apply minimum one application under shareholding quota. You can apply minimum 1 application in the retail category also. When you submit the application online, you will find an option for shareholders as well as retail categories, both of your applications are valid. Try to apply in both the categories.
Applying in Shareholding Quota (up to Rs 2L), you can also apply in Retail Category (up to Rs 2L). If applying in Shareholding Quota above Rs 2L, you can not apply in Retail Category. To clarify, an SBI Shareholder Bidding in the SBI Shareholders Reservation Portion above Rs 2,00,000 cannot bid in the RII as such Bids will be treated as multiple Bids.
Process of applying shares under Shareholder category will be same (ASBA or UPI), you need to select category as shareholder. Shareholder Category Reservation is 13,052,680 Equity Shares.
In case you applying through Zerodha, it allows only one application. They have option for Retail and Shareholding application, but you can apply only in one category. If you wish to apply in multiple categories, you can submit one application with Zerodha Console and other application from ASBA (Net Banking). Other option is to apply only via ASBA. SCSBs provides 3 different applications for categories - Retail, Shareholder and Employee. Depending on your investment strategy, you can fill multiple applications.
SBI Cards shareholding quota is going to be oversubscribed. In past IPOs, the cutoff date for shareholding quota was announced in DHRP. But in SBI Cards IPO, the cutoff date for the shareholders is 18th Feb 2020 (RHP filing date). This gave enough time for investors to add SBI share in their accounts. The allotment for Shareholders quota is done on a proportionate basis. In such case, you will sure shot get the shares, but the quantity will be depending on oversubscription value.
For example:In Ujjivan IPO, those who applied in shareholder quota, get allotment as follows -
|Applied in Lot||Alloted Shares|
|1 lot (400 shares)||400|
By seeing the above scenario, we recommend to apply for atleast 1 lot under the shareholder category to get the most of your investment.SBI Cards Allotment Status
According to RHP, If you are applying only in the Shareholders category, then you can apply any amount above Rs 200,000 subject to the maximum up to the reserved portion for the SH category. The allotment is going to be done on a proportionate basis.
Individual Investor who is the SBI Shareholder and also the employee of SBI can bid in all three categories. The bidding limit will be as follows
This is the recommendation for SBI Cards IPO Application with the same PAN Number, same Demat account and same bank through the ASBA process.
In Retail Category –
In Shareholders Category –
In Employee Category –
The book running lead managers (BRLM) for SBI Cards IPO are Kotak, Axis, BofA Securities, Nomura, HSBC, and SBICAP.
To be eligible for applying in the Shareholders category, individuals and HUFs should have at least one share of SBI in their Demat account on the date of18th Feb, 2020, which is the date of filing RHP with SEBI. The sole/ first bidder shall be a SBI Shareholder.
For retail investor and eligible shareholder, SBI Cards IPO can be applied in 3 ways –
To get maximum allotment, one can try to get a minimum of 1 share of SBI in his demat account before the cutoff date to apply in the shareholder category. Shareholder category allotment is going to be done via a proportionate basis. So if you are a shareholder in SBI, you are going to get shares for sure. The retail category is going to be decided by a lottery mechanism in case oversubscribe.
Allotment in Shareholders category is going to be as follows:
Keeping this in mind, SH bidders will get shares for sure on the proportionate basis. So one can bid 13 lots in SH category and 13 lots in Retail category or above 13 lots in NII category to get the maximum benefit of allotment. Each category has to be applied by a separate application.
Day 3- Retail category is over-subscribed, one extra day for retail users, we are assuming retail will over-subscribe by min 3 to 5x. So it’s sure that there will be a lottery. In such a case, we personally suggest applying 1 lot in retail category.
Day 3- Shareholders category is over-subscribed. Still 1 more days to go, we are assuming Shareholder quota will over-subscribed by min 5 to 7x. As per RHP, allotment is going to be done via a proportionate basis. If that holds good, you will get some shares for each lot.
QIB is over-subscribe by 57x and NII - HNI is also over-subscribe and going to get good volume tomorrow.
Things are not 100% clear, but if you wish to invest in retail and shareholder category - the best approach after day 3 is 1 lot (19 shares) in retail and up to 13 lots in shareholder quota. In that case, you may or may not get the retail lot because of the lottery but you will get some shares in SH quota, numbers will depend on how much time it's over-subscribed after day 4 and allotment strategy.
Only Retail Individual Bidders, Eligible Employees under the Employee Reservation Portion and SBI Shareholders under the SBI Shareholders Reservation Portion bidding up to Rs 200,000 are entitled to Bid at the Cut-off Price.
SBI Shareholders applying for the Bid Amount above Rs 200,000 under the SBI Shareholders Reservation Portion, QIBs (including Anchor Investors) and Non-Institutional Investors are not entitled to Bid at the Cut-off Price.
The maximum amount to invest in retail category is 13 lots of 19 shares each i.e. 247 shares * Rs 755 (cut-off price)