SBI Card has received approval from SEBI to go ahead with the IPO. Below are key points with regards to the upcoming IPO.
Key Points
- Company Name: SBI Cards and Payment Services Limited
- Founded: 1998
- Primary Business: Credit cards issuer.
- Promoter: State Bank of India (SBI)
- Current Shareholding: SBI (74%) + Carlyle Group (26%)
- Key Personnel: Mr. Rajnish Kumar (Chairman), Mr. Hardayal Prasad (MD & CEO)
- Customer Base: 96+ lakh customers
- Geographical Presence: 130+ cities across India
- Website: https://www.sbicard.com/
- Offer Document: Draft Offer Document
Key Strengths
- SBI Cards is India’s 2nd largest credit card issuer after HDFC Bank.
- The company holds 18.1% market share in the India’s credit cards market.
- The company is backed by a strong promoter group i.e. State Bank of India (SBI).
- Extensive product portfolio, which includes premium, classic, travel and shopping, exclusive and corporate cards, to cater to both individual and corporate needs.
- Partnerships with leading companies like Apollo Hospitals, BPCL, Etihad Guest, FBB, IRCTC, OLA Money, Yatra, etc.
- For the period 2017-2019, the revenue has increased at a CAGR of 44.6% and net profit grew at CAGR of 52.1%
- The only Company in India to offer 14 different modes of payment to its credit card holders.
- One of the first companies to have migrated to Europay, MasterCard and Visa (EMV) platform.
IPO Details
| Details | Value |
|---|---|
| IPO Issue Dates | 02-Mar-20 to 05-Mar-20 |
| Price Band | ₹750 – ₹755 |
| Lot Size | 19 shares |
| Min Order Quantity | 1 lot (19 shares) |
| Min Order Value | ₹14,345 |
| Max Order Qty (Retail) | 13 lots |
| Max Order Value | ₹1,86,485 |
| Allotment Finalization Date | 11-Mar-20 |
| Refunds Issuance Date | 12-Mar-20 |
| Shares Credit Date (Demat) | 13-Mar-20 |
| Stock Listing Date | 16-Mar-20 |
Issue Format
| Type | Details |
|---|---|
| Offer For Sale (OFS) | 13.05 Cr shares up for sale (3.7 Cr by SBI + 9.7 Cr by Carlyle) |
| Fresh Issue | Equity shares of ₹10 aggregating up to ₹500 Cr |
Company Financials
| Particulars (₹ Cr.) | 30-Sep-19 | 31-Mar-19 | 31-Mar-18 | 31-Mar-17 |
|---|---|---|---|---|
| Total Assets | 24,459 | 20,239 | 15,686 | 10,764 |
| Total Revenue | 4,677 | 7,286 | 5,370 | 3,471 |
| Profit After Tax | 725 | 862 | 601 | 372 |
Issue Distribution
| Investor Type | Details |
|---|---|
| Qualified Institutional Buyers (QIB) | Not More than 50% |
| Non Institutional Investors (NII) | Not less than 15% |
| Retail Investors | Not less than 35% |
Category-wise Reservation
| Application Category | Maximum Limit |
|---|---|
| Existing shareholders of SBI | ₹ 2,00,000 |
| Retail Institutional Investors (RII) | ₹ 2,00,000 |
| SBI Employees | ₹ 5,00,000 |
Top 10 Credit Card Companies in India (Jan’20)
| Company (Bank) | Cards Issued (Lakh) | Market Share | Avg. no. of Transactions (per card / month) | Avg. Spend (per card / month) | Avg. Transaction Value (per swipe) |
|---|---|---|---|---|---|
| HDFC Bank | 137 | 25.2 % | 3.8 | ₹ 13,182 | ₹ 3,440 |
| State Bank of India | 98 | 18.1 % | 3.4 | ₹ 10,886 | ₹ 3,187 |
| ICICI Bank | 83 | 15.3 % | 3.2 | ₹ 8,419 | ₹ 2,613 |
| Axis Bank | 68 | 12.5 % | 2.2 | ₹ 9,212 | ₹ 4,104 |
| Citi Bank | 28 | 5.1 % | 6.2 | ₹ 14,643 | ₹ 2,373 |
| RBL Bank | 24 | 4.4 % | 3.3 | ₹ 10,500 | ₹ 3,149 |
| Kotak Mahindra Bank | 22 | 4.0 % | 2.6 | ₹ 7,315 | ₹ 2,832 |
| American Express | 16 | 3.0 % | 3.8 | ₹ 24,284 | ₹ 6,365 |
| Standard Chartered Bank | 13 | 2.4 % | 3.4 | ₹ 8,187 | ₹ 2,428 |
| IndusInd Bank | 13 | 2.3 % | 2.8 | ₹ 19,436 | ₹ 6,994 |
Financial Ratios (Est)
- EPS FY 2019-20 (9M): ₹12.50
- EPS Full year: ₹16.70
- Book Value (Dec’19): ~₹51
- P/BV: 14.6x
- P/E ration: 45x
Awards & Recognition
- ‘Champion Security Award’ for the South Asia region at Visa Security Summit 2019.
- SKOCH Award (Gold) in Payment Category at 58th SKOCH Summit.
- ‘Most Trusted Brand’ by Reader’s Digest Awards 2019, for the eleventh time.
- Best Data Quality Award at 10th TransUnion CIBIL Credit Information conference.
- ‘Excellence in Customer Service’ award by Asia BPO Summit, 2012-13.
- ‘Excellence in Customer Service’ at the Asia Outsourcing Excellence Awards organized by CMO Asia, 2014.
- ‘Best Credit Card Program’ for SimplyCLICK SBI Card at the MasterCard Innovation Awards 2016.
- ‘Best Issuing Institution across India & South Asia’ 2012, for fraud management by Visa Inc.
- ‘Most Innovative Technology Legacy Transformation’ award for Card One Customer Relationship Management tool at International Gartner Awards 2016.
- ‘Best use of Social Media in Marketing’ at 4th CMO Asia Award.’Excellent Compliance Performer’ at Annual Compliance 10/10 awards, 2016.
- ‘Best Loyalty Program in Non- Banking Financial Sector’ at the Loyalty Summit, Customer FEST Show, 2016.