State Bank of India (SBI) is
one of the most renowned multinational, public sector bank in India.
Headquartered in Mumbai it ranked at 236th in the Fortune Globe 500
list, which is the list of world’s biggest corporations.
SBI is not only India’s biggest
commercial bank in terms of no. of branches, deposits and advances but is also
the country’s 2nd largest credit card issuer.
SBI cards offers variety of credit cards to its customers and has also partnered with some of the leading companies across industries. A subsidiary of SBI, SBI cards is headquartered in New Delhi.
SBI cards has recently come up
with the most awaited IPO. This blog is completely dedicated to SBI cards IPO
wherein we will discuss SBI’s
Size of the IPO
Date and Price of SBI Cards IPO
The biggest and the most
profitable tie-up that SBI cards has is the one with the SBI bank. This enables
the company to promptly contact the customers and get their cards processed. It
also gives the company the access to SBI bank’s widespread network of more than
22,000 branches spread across the country.
Secondly, SBI Cards has a tie-up with IRCTC. They have a separate card named IRCTC SBI Platinum Credit card which gives you special benefits on train bookings.
SBI Cards also has a tie-up
with Big Bazar. Fashion Big Bazar has SBI employees making a separate card
which enables the user to get lucrative discounts on fashion products.
Air India is also one of the
biggest tie-up done by SBI wherein users get great deals and discounts on
booking their flight tickets through the SBI credit card.
People who drive a lot can also
get the benefit of discounts when using SBI credit cards as SBI has a tie-up
with BPCL (Bharat Petroleum Corporation Limited).
SBI Cards has a total market share of 18%. According to a report dated 30th September, 2019 SBI has issued 9.46 million credit cards till date. If we talk in term of share sale, this is India’s fifth largest IPO.
The revenue earned by SBI cards
is constantly increasing. In the FY 2016-17, the Profit After Tax (PAT) generated
by SBI cards was 371.4 Cr approximately.
The revenue generated in the FY
2017-18 was approximately 599.3 Cr which in the FY 2019-2020 rose to
approximately 727 Cr.
On an average, the annual
growth rate of revenue generated by SBI Cards is almost 44.6%.
The biggest promoter of the IPO
is the SBI bank itself which holds 74% stake of the IPO being launched and will
be selling only 4% of its total stake.
The second promoter of the IPO
is Carlyle Group with a stake of 26% and is planning to sell only 10% of its
Overall, the promoters are
planning to sell only 14% of the total company value which is approximately
of the IPO
SBI cards is planning to raise
an amount of approximately 9500 Cr through the IPO. The company will sell
13,05,26,798 shares to raise this amount at a face value of just Rs.10.
The shares will be listed on
NSE and BSE.
Date and Place
The IPO will be launched on 20th
January 2020 and the closing date for the same is 22nd January 2020.
Credit in Demat
Rs.618 per share
24 shares and Maximum 312 shares
Out of the total size of the
IPO only 35% is booked for the retail investors.
The criteria for applying for
the SBI Cards IPO is as follows:
Investors/ Individual Investors: Maximum up to Rs.2 lakh per
Employee: Maximum up to Rs.5 lakh per employee with a maximum
reservation of 18,64,669 equity shares.
Bank Shareholders: Those already having the shares of SBI bank on
the cutoff date of Red Herring Prospectus filing date can apply for up to Rs.2
lakh per share. The reservation for this category is 1,30,52,680 equity shares.
The remaining 65% is booked for HNI investors and individuals out of which 50% is for Qualified Institutional Buyers and 15% is for Non-Institutional Investors.