In India SBI cards and payment services is the second-largest credit card user, launched in 1998. The company is a subsidiary of SBI (State Bank of India, India’s one of the largest commercial banks). The company offers a wide range of individual as well as corporate clients. It includes lifestyle, shopping, travel, fuel, banking partnership cards, corporate cards, etc. This content is about to explain the SBI Cards and Payment Services IPO Review along with price and GMP (grey market premium).
SBI Cards and Payment Services
- IPO Opens on – Mar 2, 2020
- IPO Closes on – Mar 5, 2020
- Face Value – Rs. 10 Per Equity Share.
- Issue Price – ₹750 to ₹755 Per Equity Share
- Issue Type – Book Built Issue IPO.
- Market Lot – 19 Shares.
- Minimum Order Quantity – 19 Shares
- Issue Size – Eq Shares of ₹10
- (aggregating up to ₹500.00 Cr)
- Offer for Sale – 130,526,798 Eq Shares of ₹10
- (aggregating up to ₹[ ₹9,854.77 ] Cr)
- Listing Exchange – BSE, NSE.
- Draft Prospectus – Click Here
Purpose of the Issue
- The main objective of issuing the shares is to carry the expenses.
- To enhance the brand name, image.
SBI Cards and Payment Services FAQ
In the year 1998, the SBI card was launched by the SBI (India’s largest commercial bank) and GE capital. The main objective of the company is to offer customer access to a wide range of top-level value-added payment products and services. They are trying to simplify the lives of their customers by offering a wide range of products.
SBI card has an easy money facility for its customers. The facility on SBI Card company empowers the cardholders to avail funds for the short term and at the low rate of the interest rate.
There is multiple beneficiary usage of the SBI card. The company has the lowest interest option. Users can easily have cash on the go and also encash up to or above their credit limit. Apart from this, they can transfer the outstanding balances of their other credit cards to SBI cards at minimum interest rates.
They offer varieties of credit card ranges. Among them, some of the credit cards gain high ratings by customers. Such as Air India SBI Platinum Card (Travel), SBI Card Prime (Premium and Lifestyle), SBI Card ELITE (Premium and Lifestyle), Air India SBI Signature Card (Premium & Travel).
Company Details
- SBI cards have market shares of 17.6% and 18.0% of the Indian credit card market in terms of the number of credit cards outstanding (as of March 31, 2019, and September 30, 2019, respectively).
- They offer an extensive credit card portfolio to individual cardholders as well as corporate clients. This includes lifestyle, rewards, travel and fuel, shopping, banking partnership cards, and corporate cards. It covers all major cardholder segments in terms of income profiles along with lifestyles.
- The time span between March 31, 2017, to March 31, 2019, their total credit card spends grew at a 54.2% CAGR.
- The company has a broad credit card portfolio that includes SBI Card-branded credit cards as well as co-branded credit cards. These bear both the SBI Card brand and their co-brand partners’ brands.
- We are also the largest co-brand credit card issuer in India as per the CRISIL Report. And the company has partnerships with many major players in the travel, fuel, fashion, healthcare and mobility industries. It includes Air India, Apollo Hospitals, BPCL, Etihad Guest, Fbb, IRCTC, OLA Money and Yatra, among others.
SBI Cards Products and Services
The products and services are as follows:
Personal Cards
- Lifestyle cards
- Rewards
- Shopping
- Travel and fuel
- Banking partnerships
- Business
Corporate Cards
- Corporate Cards
- Central travel account
- Utility
- Corporate purchase
White Label Cards
Value Added Service
- ATM cash
- Easy money
- Encash
- Flexipay
- Balance transfer
Company Management
- Mr. Rajnish Kumar: Non-executive Chairman
- Mr. Dinesh Kumar Khara: Non-executive
- Mr. Hardayal Prasad: Managing Director and Chief Executive Officer
- Mr. Shree Prakash Singh: Non-executive
Competitive Strength
- The company is the second-largest credit card issuer in India. They have deep industry expertise as well as a good track record of growth and profitability.
- Their diversified customer acquisition capabilities.
- It is supported by a strong brand as well as a pre-eminent Promoter.
- Also their diversified portfolio of credit card offerings
- Efficient risk management and data analytics capabilities.
- Advanced and scalable technology company infrastructures.
- The highly experienced as well as professional management team.
Financial Data
SBI Cards and Payment Services IPO Review
The company’s financial history is pretty good. The company has run through a big profit level. And it is being expected that the company has a long way to go. Now, let us look at the fundamental ratios from DRHP. The company’s EPS (earnings per share) stands at 9.43 (FY19 basic and diluted). It has not revealed its PE ratio. RoNW (Return on Net Worth) and NAV/Share are 24 and 46.99 respectively.
Now, its GMP (Grey market premium) which is 320-330 (at a pretty good level). And Kosak rate is 3800. Based on the fundamental analysis, I place this SBI Cards and Payment Services IPO Review at a POSITIVE level. This is not the final review. The final review will be revealed after releasing the issue date, price.
Conclusion
Stay updated with us. We will come back with another follow up of this post after releasing the IPO. It’s being expected that the IPO is going to be a big one. After a long time, the SBI card is going to release India’s biggest IPO. Many of the investors eager to invest in the IPO for the long term horizon.
