The wait is over for much anticipated IPO of year 2020 SBI CARDS. The 9,000-crore initial public offering (IPO) of SBI Cards and Payment Services will open for subscription on March 2, next month. In this blog we will learn how to apply for SBI cards IPO online within few minutes through asthatrade E-IPO dashboard. The best thing is whether you have a demat account with us or not you can still apply through our platform online. Moreover we will cover each and every aspect releated to SBI cards IPO in detail.
Incorporated in 1998, SBI Cards and Payment Services Limited is a subsidiary of SBI, India’s largest commercial bank in terms of deposits, advances and the number of branches. They are the second-largest credit card issuer in India, with an 18.0% market share of the Indian credit card market in terms of the number of credit cards outstanding as of September 30, 2019. SBI Card is a subsidiary of State Bank of India. Incase, if you are not aware of what is IPO? and basics of share market you can read these blog.
Competitive Strengths Of SBI Cards IPO:
SBI Cards offers a wide range of credit cards to individual and corporate clients including lifestyle, rewards, shopping, travel, fuel, banking partnership cards, and corporate cards, etc.
SBI Cards has partnered with several leading names across industries, including Air India, Apollo Hospitals, BPCL, Etihad Guest, Fbb, IRCTC, OLA Money and Yatra, amongst others.
As a subsidiary of SBI, the company has access to SBI’s extensive network of 21,961 branches across India. The partnership enables it to market its cards to a huge customer base of 445.5 million customers.
Headquartered in New Delhi, as of December 31, 2019, the company has a sales force of 38,677 outsourced sales personnel operating out of 145 Indian cities.
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% between fiscal 2017 to 2019. The net profit grew at a CAGR of 52.1% during the period.
Check the image below to know few data releated to upcoming SBI cards IPO:
SBI Cards IPO Important Details:
SBI Cards IPO is a main-board IPO of 137,193,464 equity shares of the face value of Rs.10 aggregating up to Rs.10,354.77 Crores.
The issue price of the IPO is Rs.750 to Rs.755 Per Equity Share. The minimum order quantity is 19 Shares per application and the offer type is Book Built Issue. The IPO opens on Mar 2, 2020 and closes on Mar 5, 2020.
The issue will be open for 4 days. Normally, IPOs are open for subscription for three days but SBI Cards IPO will run for four days. The first three days, i.e. from March 2 to March 4, the issue will be open for all bidders – QIBs, NIBs, and Retail investors (including SBI shareholders and employees). However, the fourth day – i.e. March 5 – will be exclusively for Retail investors only. For QIBs, the offer will close on March 4.
|IPO Date||Mar 2, 2020 – Mar 5, 2020|
|Issue Type||Book Built Issue IPO|
|Issue Size||137,193,464 Eq Shares of Rs.10
(aggregating up to Rs.10,354.77 Cr)
|Fresh Issue||6,622,517 Eq Shares of Rs.10
(aggregating up to Rs.500.00 Cr)
|Offer for Sale||130,526,798 Eq Shares of Rs.10
(aggregating up to Rs.9,854.77 Cr)
|Face Value||Rs.10 Per Equity Share|
|IPO Price||Rs.750 to ₹755 Per Equity Share|
|Market Lot||19 Shares|
|Min Order Quantity||19 Shares|
|Listing At||BSE, NSE|
|Market Cap (Rs. Cr.)||70890|
SBI Cards IPO Tentative Date:
|Bid/Offer Opens On||Mar 2, 2020|
|Bid/Offer Closes On||Mar 5, 2020|
|Finalisation of Basis of Allotment||Mar 11, 2020|
|Initiation of Refunds||Mar 12, 2020|
|Credit of Shares to Demat Acct||Mar 13, 2020|
|IPO Shares Listing Date||Mar 16, 2020|
- Investors Portion: QIB = Not More than 50% of the offer, NII = Not less than 15% of the offer and Retail = Not less than 35% of the offer
- Employee Reservation Portion: Up to 1,864,669 Equity Shares
- Shareholders Reservation Portion: Up to 13,052,680 Equity Shares
Revenue Model Of Company:
They generate three types of income:
(a) Non-interest income (primarily comprised of fee-based income such as interchange fees, late fees, and annual fees, among others)
(b) Interest income on credit card loans.
(c) MDR( Merchant Discount Rate)- The fees credit card company charges from the merchant for providing a facility to pay when a customer buys the product from the shop. Here, three business comes into the picture.
Company Financial Performance:
- The total income increased from Rs.3471 Crores in fiscal 2017 to Rs.7286 Crores in fiscal 2019 at a CAGR of 44.9% and revenues from operations have increased from Rs.3346 Crores in fiscal 2017 to Rs.6999 Crores in fiscal 2019 at a CAGR of 44.6%.
- The net profit increased from Rs.372 Crores in fiscal 2017 to Rs.862 Crores in fiscal 2019 at a CAGR of 52.1%.
- The ROAE has remained stable at 28.5% in fiscal 2017 and 28.4% in fiscal 2019, while ROAA increased from 4.0% in fiscal 2017 to 4.8% in fiscal 2019.
Objects of the SBI Card IPO:
- The Offer for Sale: The object of the Offer for Sale is to allow the Selling Shareholders to sell an aggregate value up to Rs.8000 Crores of shares held by them.
- Fresh Issue( 500 Crores )
The net proceeds of the Fresh Issue are proposed to be utilized for augmenting the capital base to meet the future capital requirements.
Promoters And Management:
The promoter of the Company is SBI and it currently holds (along with its nominees) 689,927,363 Equity Shares, constituting to 74.00 % of the pre-Offer issued, subscribed and paid-up Equity Share capital.
Company Contact Information:
SBI Cards and Payment Services Ltd
Unit 401 & 402, 4th Floor, Aggarwal Millennium Tower E-1,2,3, Netaji Subhash Place, Wazirpur, New Delhi
Phone: +91 (11) 6126 8100, Email: firstname.lastname@example.org ,Website: http://www.sbicard.com/
SBI Cards IPO Registrar:
Link Intime India Private Ltd , Link Intime India Private Ltd. C 101, 247 Park, L.B.S.Marg, Vikhroli (West), Mumbai – 400083, Phone: +91-22-4918 6270, Email: email@example.com, Website: http://www.linkintime.co.in
How To Apply For SBI Cards IPO Online?
Now let us learn how to apply for SBI Cards IPO online through asthatrade E-IPO dashboard. Those traders who do not have a demat account with us can still apply by enterning thier respective DPID and Benficiary Id. We will be understanding each and every step on how to apply for IPO online in this blogs. So without further wait let’s get started.
1. Visit our website Asthatrade.com on your browser. Click on the option says E-IPO. 2. A new Page will appear, you need to login in portal also all the upcoming IPO’s details with name will be listed on the screen. If you click on view details you can find all information about the IPO like (Market lot, Min. Price Range, Min Bid Quantity etc).
3. Once you click on login, There will be two options available , for new registration and for the registered user. Please keep in mind all the clients who have an active account with asthatrade can login directly by clicking on registered user. You just need to enter your PANCARD, Client ID or Registered Mobile number with captcha showing on the screen.
4. For New Users, who don’t have an account with us can also apply. Just click on New user tab and enter the details. Once you enetred the details you will be receiving the OTP on your mobile. Enter the otp and you will get logged in to the portal directly. A client ID will be sent to you for for the next time you want to apply.
5. Once you are logged in to portal, you can find all your details like your name, PAN details, UPI . You should make sure this UPI ID is mapped to your personal bank account. Now you can easily apply from the listed IPO’s from here. Click on one which you want to apply.
6. Once you click on any IPO’s listed you will be redirected to a new page, showing you couple of option. However you only need to select option under demat accounts. Clients with asthatrade can choose NSDL as there depository other options will automatically be filled showing in grey colour. Other clients not with us can select whichever depository they have in addition with DPID & Beneficary ID. For payment purpose you need to enter your UPIID.
7. While placing the bids, only quantity that is a multiple of the lot size is allowed. If you wish to apply at the cut-off price, simply click on the cut-off price and select true or false. If you want to place a bid at a different price, you can do so by entering a price in the ‘Price’ field. Once you’ve completed all these steps, click on the checkbox to confirm that you have read the RHP and other documents and click on submit. You can also modify the order on our dashboard of the portal as you can see in the image below :
How do I get a BHIM UPI ID?
Click here for a video description of the process to register on the BHIM app.
IPO Online Investment Tips:
- Whenever you are applying for IPO online make sure you do it as soon as the its available to apply.
- Try to fill for the same ipo online from different DPID i.e if in your family have more than 1 account you can possibly get the allocation done in case of oversubscription.
- You should have a good knowledge of the sector and the company you are planning to invest.
- Analysis of the company’s balance sheet is very crucial. A clear understanding of the company’s future projects and vision is very necessary to know whether it will have a sustainable future.
- Investment decision has to be taken carefully and not in a hurry.
“This is a new kind of business which is not listed in India. It is more of a financial entity and given the kind of craze around it, it will get a good response. Analysts expect the public offer to garner a good response from all categories, especially the retail segment. Since the IPO is coming from a worthy parent – SBI – the demand is likely to get amplified. That’s all from our end, incase if you have any suggestion or question please let us know in the comment section below. Till than “Keep Learning, Keep Earning”.