State Bank's subsidiary SBI Cards to go public via IPO

SBI Cards and Payment Services Ltd. (SBI Cards)

SBI Cards is a subsidiary of State Bank of India (SBI) and started operations in 1998 as a joint venture between SBI and GE Capital. It received RBI approval to operate as a non-banking financial institution on October 6, 1998. 

GE Capital’s ownership stake was acquired by SBI and CA Rover Holdings in 2017. 

SBI Cards is the second-largest credit card issuer in India, with a 17.6% and 18.1% market share of the Indian credit card market in terms of the number of credit cards outstanding as of March 31, 2019 and November 30, 2019, respectively, and a 17.1% and 17.9% market share of the Indian credit card market in terms of total credit card spends in fiscal 2019 and in the eight months ended November 30, 2019, respectively, according to the RBI. 

SBI Cards offer an extensive credit card portfolio to individual cardholders and corporate clients which includes lifestyle, rewards, travel and fuel, shopping, banking partnership cards and corporate cards covering all major cardholder segments in terms of income profiles and lifestyles.  

Tie-ups:

• Air India
• Apollo Hospitals
• BPCL
• Etihad Guests
• Fbb
• IRCTC
• OLA Money
• Yatra, etc

Existing Shareholders:

• State Bank of India (SBI) owns 74% of our total outstanding equity share capital as on the date of this Red Herring Prospectus. SBI is India’s largest commercial bank in terms of deposits, advances and number of branches as of September 30, 2019 according to the RBI. SBI is a public sector bank, with the President of the Republic of India (acting through the Ministry of Finance of the Government of India) owning 57.68% of SBI’s equity shares as of December 31, 2019. 
• CA Rover Holdings (CA Rover), an affiliate of the Carlyle Group, owns 26% of our total outstanding equity share capital as on the date of this Red Herring Prospectus. The Carlyle Group is a global investment firm with deep industry expertise with over $224 billion of assets under management as of December 31, 2019.

Financials:

• Total income increased from ₹34,710.38 million in fiscal 2017 to ₹72,868.35 million in fiscal 2019 at a CAGR of 44.9% l.
• Revenues from operations have increased from ₹33,462.03 million in fiscal 2017 to ₹69,991.11 million in fiscal 2019 at a CAGR of 44.6%.
• Net profit increased from ₹3,728.61 million in fiscal 2017 to ₹8,627.22 million in fiscal 2019 at a CAGR of 52.1%.
• ROAE has remained stable at 28.5% in fiscal 2017 and 28.4% in fiscal 2019
• ROAA increased from 4.0% in fiscal 2017 to 4.8% in fiscal 2019.

Peers:

Website: Click here

Management:

Name	Designation
Rajnish Kumar	Non-Executive Chairman
Hardayal Prasad	MD & CEO
Richhpal Singh	COO
Nalin Negi	EVP - Finance, nominated CFO
Aparna Kuppuswamy	EVP & Chief Risk Officer

IPO Snapshot: 

Particulars	Details
Dates	2-Mar-2020 to 5-Mar-2020
Face Value	Rs10/share
Price Band	Rs750 - Rs755/share
Discount	Rs75/share for employees portion
Bid lot	19 shares and multiples
Listing	NSE & BSE
Mode of Payment	UPI / ASBA (Mandatory)

Issue Details: 

Issue Size	Rs1,034,079 mn
QIB	50%
NIB	15%
Retail	35%

Lead Managers	Kotak Mahindra Capital Company Ltd. Axis Capital Ltd. DSP Merrill Lynch Ltd. HSBC Securities and Capital Markets (India) Pvt. Ltd. Nomura Financial Advisory and Securities (India) Pvt. Ltd. SBI Capital Markets Ltd.

Subscription Details:

Total	26.49x times Subscription
QIB	56.66x
NiI	45.24x
Retail	2.50
Employees	4.74x
Shareholder	25.36x

Registrar: Link Intime India Pvt. Ltd.

Allotment Status: Check Allotment status

Go to Link Intime Website

Link 2 click here

Link 3 click here

SBICARD Fundamental Data by TradingView

Source: above financial table is sourced and credited to TradingView | We are not publishing any financial data and are not responsible for any errors.