SBI Card IPO – Key Highlights, Financials & Market Size

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

  1. Company Name: SBI Cards and Payment Services Limited
  2. Founded: 1998
  3. Primary Business: Credit cards issuer.
  4. Promoter: State Bank of India (SBI)
  5. Current Shareholding: SBI (74%) + Carlyle Group (26%)
  6. Key Personnel: Mr. Rajnish Kumar (Chairman), Mr. Hardayal Prasad (MD & CEO)
  7. Customer Base: 96+ lakh customers
  8. Geographical Presence: 130+ cities across India
  9. Website: https://www.sbicard.com/
  10. 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.