SBI Card has received approval from SEBI to go ahead with the IPO. Below are key points with regards to the upcoming IPO.
Key Points
- Company Name: SBI Cards and Payment Services Limited
- Founded: 1998
- Primary Business: Credit cards issuer.
- Promoter: State Bank of India (SBI)
- Current Shareholding: SBI (74%) + Carlyle Group (26%)
- Key Personnel: Mr. Rajnish Kumar (Chairman), Mr. Hardayal Prasad (MD & CEO)
- Customer Base: 96+ lakh customers
- Geographical Presence: 130+ cities across India
- Website: https://www.sbicard.com/
- Offer Document: Draft Offer Document
Key Strengths
- SBI Cards is India’s 2nd largest credit card issuer after HDFC Bank.
- The company holds 18.1% market share in the India’s credit cards market.
- The company is backed by a strong promoter group i.e. State Bank of India (SBI).
- Extensive product portfolio, which includes premium, classic, travel and shopping, exclusive and corporate cards, to cater to both individual and corporate needs.
- Partnerships with leading companies like Apollo Hospitals, BPCL, Etihad Guest, FBB, IRCTC, OLA Money, Yatra, etc.
- For the period 2017-2019, the revenue has increased at a CAGR of 44.6% and net profit grew at CAGR of 52.1%
- The only Company in India to offer 14 different modes of payment to its credit card holders.
- One of the first companies to have migrated to Europay, MasterCard and Visa (EMV) platform.
IPO Details
Details |
Value |
IPO Issue Dates |
02-Mar-20 to 05-Mar-20 |
Price Band |
₹750 – ₹755 |
Lot Size |
19 shares |
Min Order Quantity |
1 lot (19 shares) |
Min Order Value |
₹14,345 |
Max Order Qty (Retail) |
13 lots |
Max Order Value |
₹1,86,485 |
Allotment Finalization Date |
11-Mar-20 |
Refunds Issuance Date |
12-Mar-20 |
Shares Credit Date (Demat) |
13-Mar-20 |
Stock Listing Date |
16-Mar-20 |
Issue Format
Type |
Details |
Offer For Sale (OFS) |
13.05 Cr shares up for sale (3.7 Cr by SBI + 9.7 Cr by Carlyle) |
Fresh Issue |
Equity shares of ₹10 aggregating up to ₹500 Cr |
Company Financials
Particulars (₹ Cr.) |
30-Sep-19 |
31-Mar-19 |
31-Mar-18 |
31-Mar-17 |
Total Assets |
24,459 |
20,239 |
15,686 |
10,764 |
Total Revenue |
4,677 |
7,286 |
5,370 |
3,471 |
Profit After Tax |
725 |
862 |
601 |
372 |
Issue Distribution
Investor Type |
Details |
Qualified Institutional Buyers (QIB) |
Not More than 50% |
Non Institutional Investors (NII) |
Not less than 15% |
Retail Investors |
Not less than 35% |
Category-wise Reservation
Application Category |
Maximum Limit |
Existing shareholders of SBI |
₹ 2,00,000 |
Retail Institutional Investors (RII) |
₹ 2,00,000 |
SBI Employees |
₹ 5,00,000 |
Top 10 Credit Card Companies in India (Jan’20)
Company (Bank) |
Cards Issued (Lakh) |
Market Share |
Avg. no. of Transactions (per card / month) |
Avg. Spend (per card / month) |
Avg. Transaction Value (per swipe) |
HDFC Bank |
137 |
25.2 % |
3.8 |
₹ 13,182 |
₹ 3,440 |
State Bank of India |
98 |
18.1 % |
3.4 |
₹ 10,886 |
₹ 3,187 |
ICICI Bank |
83 |
15.3 % |
3.2 |
₹ 8,419 |
₹ 2,613 |
Axis Bank |
68 |
12.5 % |
2.2 |
₹ 9,212 |
₹ 4,104 |
Citi Bank |
28 |
5.1 % |
6.2 |
₹ 14,643 |
₹ 2,373 |
RBL Bank |
24 |
4.4 % |
3.3 |
₹ 10,500 |
₹ 3,149 |
Kotak Mahindra Bank |
22 |
4.0 % |
2.6 |
₹ 7,315 |
₹ 2,832 |
American Express |
16 |
3.0 % |
3.8 |
₹ 24,284 |
₹ 6,365 |
Standard Chartered Bank |
13 |
2.4 % |
3.4 |
₹ 8,187 |
₹ 2,428 |
IndusInd Bank |
13 |
2.3 % |
2.8 |
₹ 19,436 |
₹ 6,994 |
Financial Ratios (Est)
- EPS FY 2019-20 (9M): ₹12.50
- EPS Full year: ₹16.70
- Book Value (Dec’19): ~₹51
- P/BV: 14.6x
- P/E ration: 45x
Awards & Recognition
- ‘Champion Security Award’ for the South Asia region at Visa Security Summit 2019.
- SKOCH Award (Gold) in Payment Category at 58th SKOCH Summit.
- ‘Most Trusted Brand’ by Reader’s Digest Awards 2019, for the eleventh time.
- Best Data Quality Award at 10th TransUnion CIBIL Credit Information conference.
- ‘Excellence in Customer Service’ award by Asia BPO Summit, 2012-13.
- ‘Excellence in Customer Service’ at the Asia Outsourcing Excellence Awards organized by CMO Asia, 2014.
- ‘Best Credit Card Program’ for SimplyCLICK SBI Card at the MasterCard Innovation Awards 2016.
- ‘Best Issuing Institution across India & South Asia’ 2012, for fraud management by Visa Inc.
- ‘Most Innovative Technology Legacy Transformation’ award for Card One Customer Relationship Management tool at International Gartner Awards 2016.
- ‘Best use of Social Media in Marketing’ at 4th CMO Asia Award.’Excellent Compliance Performer’ at Annual Compliance 10/10 awards, 2016.
- ‘Best Loyalty Program in Non- Banking Financial Sector’ at the Loyalty Summit, Customer FEST Show, 2016.
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