SBI Cards IPO-Upcoming 2020

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

  • Financial tie-ups
  • Market Capitalization
  • Revenue
  • Promoters
  • Size of the IPO
  • Date and Price of SBI Cards IPO
  • Eligibility criteria
  • Recommendations

SBI’s Financial Tie-Ups

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).

Market Capitalization

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 total stake.

Overall, the promoters are planning to sell only 14% of the total company value which is approximately 13.05 Cr.

Size 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.

IPO Date and Place

The IPO will be launched on 20th January 2020 and the closing date for the same is 22nd January 2020.

Events Date
Opening Date 20th Jan. 2020
Closing Date 22nd Jan.2020
Basis of Allotment 27th Jan. 2020
Refund of Amount 28th Jan.2020
Share Credit in Demat 29th Jan.2020
Listing on Exchange 30th Jan.2020

IPO Price

Price Band Rs.615- Rs.618 per share
Retailers Discount Rs.18 per share
Lot Size Minimum 24 shares and Maximum 312 shares
Minimum Amount Rs.14832
Maximum Amount Rs.192816

Out of the total size of the IPO only 35% is booked for the retail investors.

Eligibility Criteria

The criteria for applying for the SBI Cards IPO is as follows:

Retail Investors/ Individual Investors: Maximum up to Rs.2 lakh per investor.

Company Employee: Maximum up to Rs.5 lakh per employee with a maximum reservation of 18,64,669 equity shares.

SBI 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.

To get Latest update on IPO visit at Upcoming IPO 2020.

Share on:

Add a Comment

Your email address will not be published. Required fields are marked *