SBI Card IPO

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Overview of SBI Card

(a) 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.

(b) They 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.

(c) SBI Card has a broad credit card portfolio that includes SBI Card-branded credit cards as well as co-branded credit cards that bear both the SBI Card brand and our co-brand partners’ brands.

It offers four primary SBI Cardbranded credit cards: SimplySave, SimplyClick, Prime and Elite, each catering to a varying set of cardholder needs.

It is also the largest co-brand credit card issuer in India according to the CRISIL Report, and have partnerships with several major players in the travel, fuel, fashion, healthcare and mobility industries, including Air India, Apollo Hospitals, BPCL, Etihad Guest, Fbb, IRCTC, OLA Money and Yatra, among others.

(d) It has a sales force of 33,086 outsourced sales personnel as of September 30, 2019, operating out of 133 Indian cities. Had a presence in 3,009 open market points of sale across India as of September 30, 2019.

In addition, its partnership with SBI provides access to SBI’s extensive network of 22,007 branches across India, which enables it to market credit cards to SBI’s vast customer base of 43.6 Crores customers as of March 31, 2019.

Revenue Model

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.

Credit Card Company ( 1st Business) charges a 2-3% MDR fee from the merchant to facilitate the buying option for customers. Now, the credit card company alone can’t do this transaction. It is only providing the credit facility to customers. The transfer of money from a credit card company to a merchant’s bank account is facilitated by the Network providers ( 2nd Business), such as Master Card, VISA  and payment gateways companies. Now, finally without POS Machine( 3rd Business)  both the above business is of no use. So, here comes the third business, i.e. Swap machine provider.

Here if the Credit Card company is charging Rs.100 as MDR Fees from the merchant, then 75-80% goes to Credit Card company, 20-25% to the network provider or rest to POS machine provider.

Financial Performance

(a) The total income increased from ₹3471 Crores in fiscal 2017 to ₹7286 Crores in fiscal 2019 at a CAGR of 44.9% and revenues from operations have increased from ₹3346 Crores in fiscal 2017 to ₹6999 Crores in fiscal 2019 at a CAGR of 44.6%.

(b) The net profit increased from ₹372 Crores in fiscal 2017 to ₹862 Crores in fiscal 2019 at a CAGR of 52.1%.

(c) 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.

InvestorZone Take:

Opportunity:

The business of credit cards in India is at a very nascent stage. As per DRHP, our country has an urban population of approximately 45 Crores. We may assume that a credit card is used mostly by the urban population. In India, as on date, we have approximately  5 Crores credit cards, so in terms of the urban population, this is very thin.

In the e-commerce industry, only 30-35% payment is made through Credit card and the majority of the payment is done through cash on delivery model. Nowadays, these e-commerce companies are giving an option to the user to pay via debit or credit card instead of cash by providing a POS machine while delivering a product. This will also give impetus to credit card companies. Moreover, the e-commerce industry itself at the nascent stage, so the growth of the e-commerce industry will have a direct impact on the credit card business.

Millennials( age below 30 ) are using a credit card more often than our old age counterparts. India has one of the youngest populations in the world. The median age of India’s population is 28.4, which is the youngest as compared to the USA( 38.4), China(38.4), Russia(39.6) and Japan(48.4). This factor is also a driving force for credit card companies.

As we are moving towards a cashless economy, the growth of a Credit Card is inevitable.

Risk:

The only risk credit card companies have is the impact on business due to the slowdown in the economy. In the slowing economy, the loss of jobs happened quite fast. Loss of job has the first casualty on Credit card payment. As these companies don’t have any other business, the risk will be more in a prolonged slowdown.

FAQ ON SBI CARD IPO.

 

Objects of the SBI Card IPO:

a) 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.9,854.77 Crores of shares held by them. b) 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.

SBI Card IPO Details:

Open Date: Mar 02 2020
Close Date: Mar 05 2020
Total Shares: 137,193,464
Face Value: ₹ 10 Per Equity Share
Issue Type: Book Building
Issue Size: 10354.77 Cr.
Lot Size: 19 Shares
Issue Price: ₹ 750-755 Per Equity Share
Retail Discount: Rs.75( for employees)
Listing At: NSE,BSE
Listing Date: Mar 16 2020

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.

Financials of SBI Card IPO:

( Fig. in Crores )
Year Revenue EBITDA OPM PAT NPM Shares EPS
2017 3471 1122 32% 371 11% 78.5 4.7
2018 5370 1665 31% 600 11% 78.5 7.6
2019 7286 2444 34% 859 12% 83.72 10.3
InvestorZone Take: 1. SBI Card has shown tremendous growth in terms of revenue in the last 3 years. After demonetization, the demand for cash reduces which has given impetus to credit card companies. 2. SBI Card PAT has grown from Rs. 372 Crores to Rs.859 Crores in the last 3 years. 3. The company has ROE( Return on Equity ) of 25%, 25% and 23% in FY16-17. 17-18 and 18-19, which is excellent.

Comparison With Peers:

There is no listed peer in the market.

Recommendation on SBI Card IPO:

Review and Recommendation of InvestorZone is: 6/10 Pros: 1. Unique business to list on bourses. So, SBI Card will get a first-mover advantage. The SBI card has also shown tremendous growth in the credit card addition and total payment done through these cards, in the last 3 years. The street is upbeat on the same for the future as well. 2. A total credit card in India is just 5 Cr against mammoth 82 Cr debit cards. So, yes huge growth opportunity in front of the SBI card. 3. SBI Card has the advantage of a strong base of 45 Cr SBI customers, which they can use to sell credit cards. Cons: 1. As we discussed in our business review of SBI card, MDR( Merchant Discount Rate), the fee they charge from customers while paying through a credit card, is under threat from the Govt policy. The Govt. is looking to scrap MDR going forward to give a push to digital mode of transaction. 2. The UPI payment option is becoming a hot cake these days with the ease of payment. So, fintech companies such as Google Pay, Phone Pay and Paytm, if they start giving credit line on UPI, this can be a big threat to Credit Card business. Live Subscription

Registrar of SBI Card IPO:

  1. Link Intime India Private Limited

Discussion on SBI Card IPO:

    SBI CARD IPI CUSTOMER CARE NUMBER ANY TRANSACTION RELATED COMPLAINT CALL 24/7
    HELPLINE CENTRE 9330921710 / 9002223308
    customer care number 9002223308 / 6206892178 any enquiry transaction related complaint refunding enquiries call helpline number customer care support 

    IF your email is regarding SBI cards IPO Allotment, you can log onto our website, http://www.linkintime.co.in , to know your application status.
    IF your query is regarding unblocking of your allotment money in the recent IPO then we request you to kindly raise your issue with your bank or better still, please visit your branch and get the query resolved. Please inform your beneficiary bank that the necessary instruction for unblocking/debiting has already been shared by RTA with all the controlling branches of the SCSB banks on 12th March, 2020.
    IF your query is regarding the UPI payment in the recently concluded IPO, we request you to check your UPI Mandate expiry date. Either wait till the mandate expiry date for the necessary action from your beneficiary bank or contact your (beneficiary) bank to resolve the issue at the earliest. Please inform your beneficiary bank that the necessary instruction for debiting/unblocking has already been shared by RTA with the sponsor bank on the 12th March, 2020.

    This is a email I received as auto reply for confirmation of a query from linkintime

    Use the info, for people WHO STILL HAS FUND UNBLOCKING PROBLEM

    *SBI CARD: Rs 698.81cr NSE Block

    Trade; for ~10572077 shares, at Rs 661 (PER OPEN BLOCK)*

    A much better market recovery is going on sbi card. Fingers crossed and hope for best guyz..

    Market opens now..
    Sbi card IPO opens @566(-25%)
    Please hold this price or if you have excess money left buy more at this price.
    Golden opportunity for the ones who haven’t alloted any share.

    SBI Mgt is confident that it wont Trade below issue Price.

    As Result,
    Many HNIs and Fund buying will be seen at Pre open.

    Dont be in a hurry to sell
    SL 735.
    If u find it below issue Price EXIT

    SBI Card Management are positive.
    Carlyle is Managing Foriegn Funds to buy.

    Though Because of ENAM Group SBI was not Alloted to Nippon and Capital International Group.
    Therefore Listing Will be Subdued.

    As per sources, both of these will Not buy from open Market as of Now.

    However LIC GIC Nomura are in Buying Zone.

    Carlyle has arranged Foreign Buyers and Axis is working with Domestic Group incl. HDFC MF and UTI.

    HOST that Mumbai Big HNIs will be buying for short term they may be Kacholia and Bhansali Group.

    From last one night, activitity is seen SBI Card.

    It is a rumour in the market that following buyers will come on listing day.

    Gic
    Uti
    Sbi
    Axis
    Nomura
    Hdfc

    My advice would be to hold this stock who are long term investors and buy more if it comes around 630-650 level.

    The investors who have applied only for listing gain may opt to exit if they gets 15-20% listing gain, may be today or day after tomorrow.

    Dear@MW,
    I had applied 15 lots via my axis bank ASBA on behalf of my friend who’s an SBI employee. but didn’t get any allotment. How’s that possible ?

      For ASBA you have to apply only for your BANK account PAN, (EVEN THOUGH ASBA PORTAL ALLOWS ANY ONE)

      if you applied for other PAN , there is more chance to be rejected,

      I think that’s what happened in your situation

      I guess it was rejected because applying from your account would have shown your PAN…and this PAN wouldn’t be stored under employee category…as far as I know all applications are verified via PAN first…

    *2001- Anthrax is going to kill us*

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    *2016- Zika Virus is going to kill us*

    *2018- Nipah Virus going to kill us.*

    *2020- Corona Virus is going to kill us*

    *The truth is FEAR is killing you….*

    *Turn off the TV, pray, laugh, enjoy , trust God… and*

    *wash your hands again*

      As of now GMP is negative. No buyer seen across the SBI counters.

      But we guys don’t have to sell in loss, if it lists in discount.

      Have a 2-3 months view on SBI Card, and if it list in discount , try to buy near 600-630 level.

      If we get 5-10% return, then we should exit.

      I have applied for 209 shares (11 Lots) but still doesn’t get a single share in shareholder quota.

        same man, don’t undersatnd how allotment is done, it was to be proportionate i

    Applied for 10 lots in SH. NOW lien amount is shown as 0. Not allowed any.

    Received email regarding confirmation of Allotment. However, it’s not a good news anymore. The only relief, applied single lot in retail and skipped SH quota

      That 1 lot is good , SBI CARDS has good potential 🙂 NO NEED TO WORRY

    @marketwizard….just received a message that my upi mandate is successfully cancelled by me. But I didn’t do anything
    What is the possible reason..??

    The application money is still shown as lien amount in my account. That means not debited still.

      I have applied for both in S H and Retail quota, but so far amount is not debited from my account.

      1. Since even in this Corona market,
      the Subscription was too good, WHICH SHOWS, the DEMAND is high for SBI CARDS
      2. QIB can’t sell for 30 days Grace period is over meaning QIB CAN BUY MORE BUT CANT SELL EVEN 1 SHARE within 30 days
      3. The main thing is there is no competation for SBI CARDS like IRCTC -> For NOW
      4. The company fundamentals are good
      5. Growth prospects are wide
      6. Penetration is less MEANING more business opportunity YET TO EXPLORE meaning MORE PLACE TO EXPAND FOR GROWTH
      7. The valuation per share is good for the SBI CARDS IPO
      8. CREDIT OFFERING backed by SBI Bank one of the top GOVT BANK

      HENCE DON’T LOOK FOR LISTING GAIN

      THIS ABI CARDS SHARE IS UNIQUE

      SO I personally don’t think it will open negative, EVEN IF IT OPENS NEGATIVE, just hold without Selling for 2 months to see the fruitfulness (MY PERSONAL OPINION)

      Since there is good demand it will grow

      Happy hunting

    STILL NOW NO ONE SAID THEIR AMOUNT IS DEBITED FROM BANK ACCOUNT

    So anyone received any auto debit message ?

    guess after linkintime crashed with no loading they resetted the portal to old self

    Since no person confirmed autodebit message till now

    WE HAVE TO WAIT TILL TOMORROW

    Market conditions are very poor. Listing on Monday. Nothing can be said at this moment. We should pray that till Monday global market recovers and effect of corona subdued.

    Market conditions are very poor. Listing on Monday. Nothing can be said at this moment. We should pray that till Monday global market recovers and effect of corona subdued.

    I have applied 817 shares ie 43 lots in SH category. What ican be expected allotment.
    1. 817/26 =31 Shares
    Or 43/26 = 1.6 lots so 1 minimum 1 lot and 2 if lucky.

      As per my calculation
      If you have applied at Cut off price then 817/2.33= 350 Shares
      or if not
      then 0 Share
      in Share holder Category.

        Mr RN, can you elaborate the process of dividing 2.33 in shareholder category applied in cutoff price?

        Since It was an application for more than 2 lacs I have to give price bid and I applied at Rs 755, which is now cut off price.

      How come u applied more than 13 lots

      Wasn’t shareholder category restricted to 2lakh rs
      43 lots will be around 7 lakh rs

        I applied only in shareholder Category so I could apply or more than rs 2 lacs.

      As per data collected from different source
      Share Holder BSE NSE Total No of Lot No of Times
      13052680 125380449 205603674 330984123 17420217 25.35756052
      Cut off 21903770 8549392 30453162 1602798 2.333096498
      Price 103476679 197054282 300530961 15817419 23.02446402

    Sbi card ipo Grey market premium for 6th March is Rs 90-100 and it is continously falling everyday.

    RK Damani n Enam group invests 6000 crores.
    Basant Maheshwari 4000 cr. Capital

    itl wanted 900 Cr allotment in Anchor book.

      Sir
      How about yes bank sbi card application
      Heard that rejected it’s true or not sir

    Guys take this market opportunity to buy some good quality stocks. Good time to make a Portofolio.

      @MarketWizard, What are the shares do you suggest ? May be your personal view if you could share, please.

        That is number of shares and not number of applications. To arrive at allocation number of application(Valid) is required. If there are 10,000 valid application and i1 Lot is allotted to each application then, 190000 shares out of the reserved quota is allocated and balance may be given on proportionate basis for those who applied for more than 1 lot. I am searching for Total number of application and there distribution for 1Lt,2 Lots, 3Lots etc. I am unable to find this information.

        Out of 26 lakh applicants in Retail category only 22.5 lakh applicants will get 1 Lot each. Which means draw of lots will be resorted to. 45 out of 52 will be successful in getting allotment of 19 shares. Since break-up of Applications Lot – wise is not available it may be difficult to exactly pin point the allocation in each group. May be assured allotment of 1 Lot for those who applied more than 1 LOT. Let us wait and see whether there is any advantage for those who applied for more than 1 LOT.

      Around 26 L Applications.
      At Cut off – Around 22 L Applications.
      No. of lot available- also 22 L.
      So all are likely to get Minimum 1Lot.
      Only those, who have applied at Cut off.

    *All YES BANK bidded for ASBA for SBI CARD before 6 pm yesterday would hold perfect for allotment and this amount would be above 50000 limit moratorium and also when lien is removed on allotment date and woyld be above above moratorium limit which was put on 6 pm as law of justice takes place before 6 pm as on 5th Mar 2020.*

    *Also YES BANK cheque submitted for clearing debit would be honoured today if found ok all points.*

    *Also any cheque deposited un Yes Bank account yesterday before yesterday clearing time could not be stopped by by payee bank account holder if found ok on all points to support law of justice.*

    Share holder quota was
    Subscribed 25.00xx.

    So allotment as per proportionate ratio, would be as follows:

    19 shares would be alloted to
    1 out of 25 in (14345)
    2 out of 25 in (28790)
    3 out of 25 in (43035)
    6 out of 25 in (86070)
    13 out of 25 in(186435)
    If any rejection in share holder quota propionate ratio would change..

    Retail subscribed more than
    1.5x times.

    So avg allotment application wise would be 2 out of 3 applied

      @market wizard.. How may shares would be alloted in shareholder quota if the person applied for 11 lots ie for Rs 157795..??

      first preference should be given to applications on cut of price right ?

      on the basis of your description MW, as I understand, those who has applied for Rs. 86070/-and above but below Rs. 186435/- have a chance for allotment in the ratio of 6 out of 25 and so on in SH quota.
      Pl clarify as I have applied for Rs 100415/-( 7 lots) in SH quota apart from 1 lot in retail .

      Is it advisable to sell on the day of listing,bidded for 2lakh.how many could be allotted approx?

      Retail category is subscribed 2.5 times. If proportionate allotment is adopted than we can expect 7 shares for 19 shares, 15 for 38, 22 for 57 etc. But I don’t know how many price bids are below 755 and what will be the cut off price. If cut-off price is 755 then allotment may be better than indicated above.

      If they decide3 to allot minimum 1 lot against each application the all retail applicants will get 19 shares. Balance qty will be distributed proportionately for those who applied for more than 1 LOT.

    HNI/NOH/CO

    extended till 4.30 pm

    Retail Bidding ( IND ( less than Rs 200000 ), SHA ( less than Rs 200000 ) and EMP ( less than Rs 200000 ) )

    extended till 6.00

      checked, done properly.
      I think those who applied 25 or 26 lot in SH quota will only be allotted 1 lot as per proportionate basis and those who applied in Retail has 40% chance .

    Subscription Status

    Mar 5, 2:00PM QIB = 56.66x, NII= 15.83x, RII= 2.21x, EMP= 3.41, SH =7.25x

      kya abhi bhi bid lgaa skte hain kya…aur sh quota mein max kitni amount tk apply kr skte hain…p.s retail category mein phle se
      1 lot lga dia hai….

    Inhave 2 demat accounts….with 1 I have shareholder….how to subscribe for shareholder and retail quota…is it worth subscribing

    @marketwizrd pls confirm this
    diff. between cut off price and price band is, cutoff price is the highest price set by co.(e.g. in sbi card it’s 755)
    whereas, price range means any price in between floor & cutoff price(in sbi card it’s 750-754)

    now when we looking at live sub. data it shows

    share res. share bids no. of times
    Retail Individual Investors(RIIs) 42796641 75754444 1.77
    Cut Off 56379954
    Price bids 19374490

    don’t u think in this case, to calculate accurately no. of time sub. we should consider only cutoff bids which in above case 1.32

    bcoz, obviously co. ll give pref. to highest price bidders 1st so 1.77x should not be considered and 1.32x is most accurate

    pls share your view on this.
    thank you

      tomorrow is day for individual investors

      individual investors include
      1. HNI(i.e NII)
      2. RETAIL and ”
      3. Shareholder application below 2 lakhs”

        @ Deepangeorge

        Are you saying that shareholders (Applying only in shareholder category) can’t apply one appilcation of more than 2 lac? I have HDFC ASBA open before me and it shows Shareholder HNI application (Shareholders applying above 2 lac) available till 02:00 pm on 05/03/2020.

        Please clarify

        Yes above 2 lakhs comes in HNI with only Shareholder application is allowed roo

    Doubt regarding SBI App under Share Holder Quo
    to. I am holding SBI 100 share in Demat AC 1 another 200 SBI share in Demat AC 2. WHETHER I am eligible to apply 2 time under share Holder Quota. This is in addition to Individual app Quota. Kindly clarify. Ram 🔑

      All depends on PAN , not DEMAT

      hence take into account for how many PAN you have

      Based on it apply

      Meaning 1 PAN that is considered Shareholder is ELIGIBLE only for 1 Shareholder application and 1 Retail application

    Live subscription details of IPO ON Day 1 .Day 2 -Day 3 etc is not available like earlier a week ago like ITI IPO etc. Kindly resume that. Will be useful for deciding application lot.
    Ram 🔑

    @marketwizard
    I have 2,15,000 to invest in IPO
    and I have 9 D-mat a/c
    and also SBI share holder
    pls suggest how should I apply to take max. listing gain

        1 lot cost 14345
        You have 215000
        Add Rs175 to it and make it Rs.215175 to GET 15 lots POSSIBILITY

        Apply 9 lots in Retail = 129105

        Remaining amount 215175-129105 = 86070

        86070/14345=6 lots
        WITH THIS REMAINING AMOUNT YOU HAVE 6 lots and TWO CHOICES
        1. Apply 1 lot EACH in 4 Shareholder application and 2 lot in 1 Shareholder
        (OR)
        2. Apply 6 lots in 1 Shareholder DEMAT

        These are the best POSSIBILITY

    Sbi cards ipo

    Hope all client and brokers
    Have submit application in banks, or done net banking

    Tommorow is last day if pending do before 1 pm.

    Upi bids with us open til
    4 pm tommorow .

    All the best for allotment 🙏

    Dear market wizard
    I have 80000
    Please suggest how to bid.
    I have 2 demat account n both account have shares of sbi

    IRCTC had 2 crores of issue size with final Subscription 112 times

    SBI CARDS, for 13.71 crores of issue size FOR TODAY it’s 15 Times

    SAY FOR EXAMPLE, If SBI CARD were of 2 crores (simulation) then this 15 Times Subscription would be equal to (13.71/2)*15 Times = 102 times

    Comparative 112 IRCTC with 102 SBI CARDD

    VERY GOOD

    Hope you all understand the calculation to understand my comparison

    Highesy ever subscription in QIB Category in SBI Card……. Record broken of all previous ipo’s 💐💐💐

    Non qib closes tomorrow. Hni comes in non qib.

      For bids above 2L, does it make sense to apply in hni quota or shareholder?
      At present, hni is oversubscribed ~1.2X while shareholder is ~2.2X. But shareholder would include many small bids as well (like 1 lot).

      So, which category will get higher allotment?

        HNI game will start tomorrow after 1 PM. So, nothing can be concluded now.

    Anyone
    Please suggest on strategy for shareholder

    What is expected subscription
    Does it make sanse to invest large amount like 1.5l Or so if we get only 1 lot out of that
    If subscription is 10x

      Apply whatever you can in shareholder quota.

      Dear MW, Any assumption on The Shareholder category Subscription?

      Thanks
      I have applied 1 lot in retail

      So tell me how much can I apply in shareholder
      12 lots(1.8l)

      Or full 13 lots(1.95l)

    Subscription Status
    BSE+NSE QIB NII RII EMP SH TOTAL
    Mar 4, 20 12:49 9.77x 0.65x 1.46x 1.86x 1.80x 3.37x

    Subscription Status
    BSE+NSE QIB NII RII EMP SH TOTAL
    Mar 4, 20 12:49 9.77x 0.65x 1.46x 1.86x 1.80x 3.37x

    If i have sold share of sbi today then ll I be eligible to apply under shareholders category?

    Day-Date=Mar 4, 2020 10:40 am

    QIB= 3.41x

    NII= 0.50x

    RII=1.29x

    Emp=1.85x

    Others=1.52x

    Total=1.70x

    Nobody should panic and apply without any fear.

    I will apply 1 lot in retail
    Kindly advise the strategy for shareholders quota

    What is expected subscription figures for shareholders quota

    And howuch should we invest in shareholders

    Any estimates / guesses of the shareholder category over subscription ? Is a 40 lot shareholder application enough to get one lot ?

    Day-Date=Mar 3, 2020 13:04

    QIB= 0.00x
    NII= 0.20x
    RII=0.92x
    Emp=0.82x
    Others=1.02x
    Total=0.58x

    Hi Market Wizard, CNBC AWAAZ says that retail, shearholder only apply through UPI,can’t apply through ASBA, It is True?

    @MarketWizard, I’ve applied for the IPO through SBI online banking. I see “Lien Marked Amount” has been set. However, When I see the status of my IPO here -> allotmenthttps://www.bseindia.com/investors/appli_check.aspx

    I see the UPI confirmation status shows Pending and also, Amount confirmed says 0.00
    Is there something missing from my side?

      Don’t worry, if you have applied through net banking and amount showing Lein, then just chill.

      UPI can’t say. As I haven’t applied my self as yet from UPI. I apply through ASBA only.

    Corona virus cases are confiemed in India…. Now is it worthy to subscribe in this IPO..?? as market will behave adversely after this incident..

    @Marketwizard.. While applying order from hdfc netbanking in shareholder category the same is showing order could not be processed.. Please suggest

      may be some technical error. try after sometime.

    Wanted to apply 1 lot. So, pls suggest I either go with shareholder category or Retail category?

    I would like to point out that one of the CON started here is NOT POSSIBLE

    “The UPI payment option is becoming a hot cake these days with the ease of payment. So, fintech companies such as Google Pay, Phone Pay and Paytm”

    Why because?
    Because there is no chance for Google Pay, Phone Pay and Paytm to arrange FIELD EXECUTIVE to hunt down defaulters

    The main job of credit offering platform is to get default amount recovered

    Hence these payments gateways like Google Pay, Phone Pay,… Etc don’t have facility to manage DEBT COLLECTING FIELD EXECUTIVE

    hence won’t be fruitful

      Hence the govt policy of MDR( Merchant Discount Rate) is the only CON

      no other CONS

      Please research on AI-based companies which are helping in reducing risk in a retail unsecured loan such as credit card loan. They continuously scan the expense and saving behavior of a person, to judge the probability of him/her defaulting with an unsecured loan. So, going forward first the use of tech. will reduce the delinquency level and secondly, if these start-ups enter into credit business, they will start making strategies to hunt down defaulters as well.

      By the way AI is based on pattern prediction probability, but human behavior can’t be predicted, hence I doubt AI to predict human behavior based on pattern SINCE HUMAN EMOTIONAL PATTERN IS UNPREDICTABLE more so when it involves money

      Don’t want to go out of subject on technicals, but it’s Very hard to implement when it involves money that needs 100% accurate prediction to avoid bad loans

      My personal opinion

    Hi, MW..
    I have sbi earlier than 17th feb, but doesn’t got shareholders mail. Which category to apply?

    if someone applies only 1 lot in shareholder quota and shareholder quota is oversubscribed 40 times, proportionate allotment ratio is 19/40 = 0.475 shares. will the applicant be allotted any shares ?

      Just for awareness regarding Shareholder allotment system

      Allotment system: Proportional

      MEANING 10x Subscription (in Shareholder category APPLICATION WISE) means you need your Shareholder application to be 10 lot to get 1 lot

      In Proportional 1 lot is taken minimum, and thereafter 1 lot + 1 share (or) 1 lot + 2 shares (or) 1 lot + 3 shares (or)…. Etc , can happen

      Minimum is 1 lot in Shareholder

      This is because you apply lot wise and not share wise

      Meaning you apply proportional quota as 1 lot, 2 lot.. etc and not as 19 shares, 20 shares.. etc

      Hence a single application should be given 1 lot

        i think we apply in no of shares and in the multiple of lot. we do not apply 1 lot, 2 lot, 3 lot. we apply 19 shares, 38 shares, 57 shares and so on. The unit is shares no is in the multiple of 19.

    @Market Wizard should we finally go as a retail investor or go with shareholder category..??
    Please advice

    On 29th February 2020

    GMP Rs 327-336

    Application :Rs. 3840

    Subject to Rates : Rs. 5070

    Employee of SBI who has SBI shares can apply upto 9 Lakhs .
    Employee quota – 5 Lakhs
    Share holder qoua – 2 Lakhs
    Retail quota – 2 Lakhs
    Admin is this correct or any changes in it please confirm .

    Hi

    Kindly clear 1 doubt

    If in shareholder quota i apply for 13 lots
    And subc is 40x
    Then will i be alloted any shares or not

      Aashish Bhai,

      The minimum lot size is ~15000.

      If the Sh quota is subscribed 40x, then 40*15000= 6,00,000.

      So, any application below 6,00,000 won’t get anything.

        In any case, no one will get shares below 19. But yes, you can get 20,21,22, etc shares.

      Lottery to only one with one lot for three application of 13 lot each if oversubscribed 40 times

    Hi Market Wizard.. As advised by you I have 1 SBI share in my account.. I have purchased it 3 months ago.. Now what should be my ideal strategy of applying ?
    Can I apply 1 lot under retail category and 1 lot under shareholder category ?

    ALLOTMENT KESE SHOW HOGA JISNE SHAREHOLDERS & RITAIL DONO SE APPLICATION LAGA

    *SBI Cards -Here’s what brokerages advise*

    Motilal Oswal

    Given its dominant position in the credit card market and strong parentage, SBI Cards is well placed to benefit from the rising trend of digital payments and e-commerce.

    Strong growth, stable asset quality, and superior return ratios provide comfort and justify the premium valuation. Further, being the first in the segment to get listed, it could generate high investor interest. Thus the brokerage recommends subscribing to the IPO.

    Anand Rathi

    During FY14-19, SBI cards grew faster than the system in terms of transaction volume and also credit card outstanding. It expects this to continue with growth in credit card spend at 25 percent for the system during FY20-25. SBI Cards is likely to mine the huge debit card base for SBI more effectively.

    Ambit

    SBI Cards’ outstanding card base has grown at a CAGR of 28 percent over FY15-H1FY20 with a market share of 18 percent. With low credit card penetration in SBI customers, strong brand name and distribution, SBI Cards has the potential to grow its card base at 23 percent CAGR over the next 5 years leading to a market share of 22.5 percent by FY24.

    Expected valuations are also at 83 percent premium to average valuation of high growth and/or high RoE lenders like HDFC Bank, Bajaj Finance, Bandhan Bank, AU Finance and Aavas Financiers.

    However, unlike these other lenders, SBI Cards is a mono-line business with no optionality to get into other businesses given parent SBI’s presence in other businesses. This lack of optionality means that the company is exposed to vagaries of credit card business compared to other lenders and hence should also be a factor determining valuations.

    HDFC Securities

    SBI Cards intends to grow its cardholder base by continuing to expand its customer acquisition capabilities. As part of this strategy, it aims to increase the number of open market physical points of sale that it operates across India. In particular, it is focused on increasing its presence in India’s tier II and tier III cities where its cardholder base has historically been underrepresented, but which has contributed an increasing proportion of its new accounts in recent years.

    SBI Cards also remain committed to entering into new co-brand partnerships, including leading organized retail chains, online aggregators and financial marketplaces, to tap into new cardholder segments by cross-selling into its new co-brand partner’s customer base.

    Yes Securities

    SBI Cards is a solid business having a large multifaceted distribution franchise, sophisticated and scalable core technology systems and a mature and capital-efficient revenue profile.

    Being a proxy consumption play, the brokerage would prefer P/E as a valuation basis; wherein SBI cards is being offered at 45xFY20 (post-money) and 26xFY22 multiples. A 25 percent growth rate appears self-sustainable on current RoE and dividend pay-out. The asset quality cycle has been benign for nearly a decade now; thus, any disruption in the credit cost cycle could significantly impact valuation and sustainable growth rate.

    Emkay Securities

    SBI Cards IPO, at a higher band of Rs755/market cap of Rs 70,900 crore, implies a premium valuation (PE of 45x based on 9MFY20 annualized EPS) compared with developed and developing economy peers that are trading around 9-18x and even some retail-oriented high-growth Indian banks/NBFCs that are trading around 20-47x PE. We believe that SBI Cards, as the second-largest pure-play credit card player with a strong parental lineage, is well-positioned to maintain a strong growth trajectory and sustainably superior return ratios, thereby commanding premium valuations.

      Retail- Lottery.

      Shareholder quota – Proportionate

      HNI- Proportionate

        lottery means lottery…if you have luck you will get allotment…if not you wont…
        lottery applicable only if applications count exceeds the available number of lots…
        for under subscription confirm allotment provided no technical rejections

    Hi
    I want to sell 10 (retail and sh) applications for IPO. Experts suggest how can I do this?

        I checked with Geojit / SAS. They are not providing this service. Can you give names of brokers who facilitate these transactions.

    FRIENDS DONT GET CONFUSED, APPLY IN RETAIL SINGLE LOT AND IF YOUR ARE SHAREHOLDER APPLY 12 LOT (MAX) IN SHAREHOLDER CATEGORY IN EACH VALID DEMAT ACCOUNT. MOST OF US WILL GET ALLOTMENT IN RETAIL AS PORTION IS 3 TIMES BIGGER THAN SHAREHOLDER QUOTA.

    Important Clarification

    Please note an eligible SBI shareholder bidding in SBI shareholder reservation portion (subject to bid amount not exceeding ₹2,00,000 under SBI shareholder reservation portion) may also bid under net offer i.e. either in Retail Individual Bidders Portion for upto ₹200,000 OR in Non-Institutional Bidders Portion such that the Bid Amount exceeds ₹200,000 but not exceeding the size of the Net Offer (excluding QIB portion), subject to applicable limits.

    An SBI Shareholders bidding in the SBI Shareholders Reservation Portion above ₹200,000 cannot Bid in the Net Offer as such Bids will be treated as multiple Bids.

    If i apply for 1000 shares in Shareholders category and if the shareholders category is subscribed 100 times.

    I will be allotted 10 shares for sure is it?

    I hold SBI shares for over 3 months. How do i know if im eligible in Shareholders category? ANy specific mail/information will come?

      DONT WAIT FOR EMAIL. APPLY IN RETAIL AND SHAREHOLDER CATEGORY BOTH.( SEE MY ABOVE MSG)

    hello ipo guru,

    i am an employee of SBI,
    i can invest up to 2 lakhs..

    my sis and my wife is also working in SBI
    they also have demat account..

    shall i apply entire amount through my account or shall i split the amount to my sis and my wifes ac…???

    As emp portio n is allotted proportionally,
    which is the best way to maximise my allotement..

    Should i apply entire amount of Rs.2 lac through my account or should i distribute the amout in three accounts…???

    In which way i can i get maximum number of shares…???

    why there are no rates in share holder quota?
    share holder quota and hni quota are combined? i think it is not possible.
    aspproximately 363 crore are reserved for share holder quota-retail. am i right?

    Msg got today..
    Dear Investor,
    Please note an eligible SBI shareholder bidding in SBI shareholder reservation portion (subject to bid amount not exceeding Rs. 2,00,000 under SBI shareholder reservation portion ) may also bid under net offer i.e. either in Retail Individual Bidders Portion for upto Rs. 200,000 OR in Non-Institutional Bidders Portion such that the Bid Amount exceeds Rs. 200,000 but not exceeding the size of the Net Offer (excluding QIB portion), subject to applicable limits.

    An SBI Shareholders bidding in the SBI Shareholders Reservation Portion above ? 200,000 cannot Bid in the Net Offer as such Bids will be treated as multiple Bids.

    Regards,

    Team, Link Intime India Pvt Ltd

    On 25th February 2020

    GMP Rs 328 /334

    Application :Rs. 3950

    Subject to Rates : Rs. 4930

    Hi @Market wizard..

    Please help me to understand this as I have 600000rs and 3 demat account… Please advice how could I manage this and in which category should I proceed to get max lot.. Hoping a great advice from your side as usual..

      Apply 2 app in retail and rest money in Shareholder quota via any one account.

      (i) 6 lakh

      2*15000= 30,000 ( 2 in retail )

      5,70,000 in shareholding quota from third account.

      0r

      Apply 3 apps in retail~15000 each and 3 app in shareholder quota of up to 1,85,000 each.

      (ii) 6 lakh

      3*15000= 45,000 ( 3 in retail)

      remaining 5,55,000/3= 1,85,000 in three shareholding quota.

    @marketwizard
    Sir as SH quota is only 10%, Do you really think HNI will apply through this route?

      HNI quota is also just 15%. So, if HNI Quota subscribed heavily then they can move to shareholder quota.

    On 24th February 2020

    GMP Rs 337 /343

    Application :Rs. 4120

    Subject to Rates : Rs. 5130

    *** Forwarded Information***

    Strong buzz in the Retail segment about #SBICards IPO to be the next #Dmart

    Our view : Absolutely not

    At 55x FY21 p/e with more than 50% of its users not fully aware about applicable T&C, and company revising policy w.r.t annual charges very frequently – mkts would take a note

    Ofcourse we are not denying of the possible listing gains, but taking a note for the HNI funding route – the banks have hiked the funding cost by close to 100%

    Leaving thinner margins for applicants to make money on the Big bet they need to make to have a slice of the pie !

    SBI Cards IPO – Market’s Current Estimates of oversubscription:

    RII = 35.00L Forms = 1.55X Applic. wise (Avg allotment of ~12.22 shares per lot)
    NII = 178.5K Crs. = ~128.95X
    SH = 127.0K Crs. = ~128.87X

    *Record date for SBI shareholder for applies in SBI Card IPO*

    Investors who hold SBI shares on the *18th Feb 2020* (the date of filing RHP with SEBI) are eligible to apply under the shareholder’s category of SBI Cards IPO. As per RHP, the SBI shareholders can apply above Rs 2 lakh and maximum up to reserved poprtion for the SH category. SBI shareholders (bidding up to ₹2 lakhs) can also apply under the retail category. Further, if an SBI shareholder is also an SBI employee, he/she is also eligible to apply in all the three categories- RII (up to ₹2 lakhs), Shareholder (up to ₹2 lakhs) and Employees (up to ₹5 lakhs).

    sirji…in short ..ye btaao ke…retail category mein kitne times subscribe hone ke chances hain…share holder quota mein bhi…, aur hni mein bhi…aur jaise sh quota mein km allotment hogi to hni quota mein apply kaise krein…

      In short,

      Retail will be subscribed max 2 times.

      Shareholder quota max 40-50 times.

      So, apply accordingly.

    @ Market Wizard

    Have shareholders received email from SBI regarding the offer? Because haven not. Also I have same savings account linked with two different DMAT accounts. So can I use netbanking to apply using the DMAT where SBI shares are held?

      No need of confirmation by email. How that is possible? When we open the Demat account, we need PAN, Bank Account number and Aadhar number on the same name.

        Its in the same name. I have HDFC Bank account linked with HDFC Demat and Zerodha Demat. All are in the same name and have same PAN and address. So can I use that HDFC Savings account to apply using Zerodha Demat where I have the SBI share or not?

          In short both Dmat accounts (HDFC and Zerodha) and the bank account are in the same name with same pan and Aadhar and address.

          So can I apply marking either of those two DMATs as beneficiaries? Or is this why I have not been getting allotments in the past. Please throw some light on this.

    Almost no chance for retail applying in Shareholder quota.

    If shareholder quota subcribed under 12x, then there is a chance.

    But expectation is above 40x.

    If it goes 40x, then min application of Rs. 6,00,000, will give you one lot.

    If it goes 50x, then min application of Rs. 7,50,000, will give you one lot.

    Now as we know, the shareholder quota is the mini-HNI and the shares will be allotted in a proportionate way, below is my calculation based on a subscription basis.

    Size of one lot ~15,000.

    If shareholder quota subscribed 40x.

    then, 15000*40= Rs. 6,00,000

    So, if anyone applies an application of Rs. 6,00,000, he/she will receive a lot.

    If it is 50x, the minimum application requirements will be Rs. 7,50,000, to receive one lot.

      Please explain whether the allotment will be in multiple of lot size i.e. 1 lot, 2 lot etc or in nos. i.e. 1,2,3, etc or minimum 1 lot and incremental in multiple of 1 i.e. minimum 13 and then 14,15 16 etc.

    As I understand, Individual with SBI shares in their DP ACCOUNT as on 18th Feb2020 can apply in both.
    My doubt is whether we can apply Rs. 2 lac each in individual and shareholder quota or Rs. 2 lac in Individual and no limit in Shareholder quota or only Rs. 2lac in both the category.
    Market Wizard , please clarify.
    thanks

    @ Markets Wizard

    I don’t know if it’s just me, but I haven’t received any email communication from SBI owing to my shareholder status, to participate in the offer

    Also if I have say 4 Lac. Would it be advisable to apply one lot in retail and a 2Lac application in SH quota? Or should I skip the retail category and make a 4 Lac application in SH quota?

    Please guide.

      Just to add to your question..I have another question…say I have 4L…is it advisable to apply the 4L under shareholders category or under HNI category? There are laksh of shareholders for SBI and limited shares in the SH quota…

        Ok but if I don’t avoid retail category, I won’t be ab;e to apply more than. 2 Lac Rs. worth of shares in SH quota. This is why I asked the question.

    @Market wizard sir:
    FOR RETAIL INVESTOR |& SHARE HOLDER, IF I APPLY FOR RETAIL CATOGARY AS WELL AS SHARE HOLDER CATOGERY WILL I GET CHANCE TO GET IN BOTH CATOGERY.(TOTAL OF BOTH BELOW 2LAKS)

      FOR RETAIL INVESTOR |& SHARE HOLDER, IF I APPLY FOR RETAIL CATOGARY AS WELL AS SHARE HOLDER CATOGERY WILL I GET CHANCE TO GET IN BOTH CATOGERY.(TOTAL OF BOTH BELOW 2LAKS)
      HOW MUCH SHOULD I INVEST IN RATIO 19*755=14345 IN RETAIL AND REMANING IN SHARE HOLDER CATOGERY 185650 IS IT RIGHT. PLEASE EXPLAIN

        INVEST 1 LOT IN RETAIL AND REMAIN IN SHAREHOLDER QUOTA. AS IPO SIZE IS LARGE MOST OF US WILL ALLOTMENT IN RETAIL CATEGORY. GETTING GOOD ALLOTMENT IN SHAREHOLDER QUOTA HAVE VERY LESS CHANCES.

        Yes. Retail(<2 lakh) and Shareholders (<2 lakh).

        Treat this as two opportunities.

        As you are applying in retail, so in both the opportunities the value should be less than 2lac.

      Everything depends on how much each quota will get subscribed…you need to have extremely good luck to get allotment in this

    Dear Market wizard sir
    I have 10 lakh rupees to invest and only two demate account.
    I am also eligible for shareholder category. Which is best option to apply for SBI card ipo …
    1. 1 application in retail and remaining amount in shareholder category. That is applying 4.80 lakh in both demate account.. or going with hni category.
    Please advise.
    Thank you…

      One option:

      Apply 1 lot in retail i.e. 14345. and remaining money from the second account in shareholders’ quota as HNI.

      Second Option:

      Apply 1-1 lot in retail and 13-13 lots in shareholders quota as retail.

      It all depends upon how much subscription is coming in Shareholder quota.

      MY view go with option one.

    I am holding SBI shares since many months…so I’m eligible to apply in shareholder quota…
    Can I apply for more than 2L in single application under shareholder quota? Is there any max limit in this quota?

    Sir as per the sbi card rhp

    Shareholder get proportion allotment and also one can bid whole shareholder portion in 1 application if he only bid in shareholder category.

    Sir
    This is looks like mini hni.

    Sir
    It’s looks like cheating with retail shareholder

    Sir if possible then kindly change this to save retail shareholder.

    If not possible minimum allotment then please give maximum bid up to 2 lac for all

    It’s a request

    Kindly mail this to all mail address which is on page no.1 in rhp

    Because retail shareholder getting 0 allotment in shareholder category due to hni participate.

    And no limit for bid size

    If so much mail send to them then may be they correct shareholder category allotment basis and also limit up to 2 lac maximum.

    Kindly mail to this address.

    sbicard.ipo@linkintime.co.in
    investor.relations@sbicaps.com
    investorgrievances-in@nomura.com
    sbicard.ipo@kotak.com
    dg.india_merchantbanking@bofa.com
    investor.relations@sbicard.com

    Share holder kote ke bad
    retail kote se hhi alag se application laga shakte kya sir ji please reply

    What is proportionate base allotment in share holder quota..
    How they calculate..
    Please explain..

      let us understand this with a test case

      Total shares offered = 100
      total bidder = 5

      1st bidder- 50 share
      2nd bidder- 100 share
      3rd bidder- 200 share
      4th bidder- 400 share
      5th bidder- 500 share

      So, for 100 shares total bid received is 1250 from 5 bidders. This indicates that issue is subscribed 12.5 times. Now the question is who will get how many shares in the proportionate system of allotment. So bidders will get shares in the following manner.

      1st bidder- 50/12.5= 4 share
      2nd bidder- 100/12.5 =8 share
      3rd bidder- 200/12.5 = 16 share
      4th bidder- 400/12.5 = 32 share
      5th bidder- 500/12.5 = 40 share

      Hope you understand.

      The shareholder quota is on the basis of proportionate allotment and there is no limit one can apply.

      Note: The above example is just of the illustration and not be construed in totality. The Actual allotment may vary depending upon lot of permutation and combination.

      Nicely explained thank you. But this will affect the chances of getting allotment of small investors in SH quota

    HNIs have to take a decision.

    Whether to bid in shareholders or HNI category.

    Only one is allowed.

    On 20th February 2020

    GMP Rs. 322/330

    Application :Rs. 3660

    Subject to Rates : Rs. 4450

    Please correct me if wrong Anywhere:

    Only Retail Investor who is shareholder of SBI can apply in two category and that too maximum two lakhs per application

    HNI can apply in any one category i.e. either in General HNI or HNI Shareholders category

    Allottment to all retail shareholders and HNI shareholders quota will be on proportionate basis without allotting minimum shares per applicant as is being done in case of General Retail Category

      *SBI CARD IPO :*
      નું *RHP* કાલે સેબી માં ફાઈલ થયું છે.

      🔹3 ના બદલે 4 દિવસ ipo ખુલ્લો રહેશે. ચોથા દિવસે ફક્ત
      રિટેલ , hni, અને શેર હોલ્ડર માટે ખુલ્લો રહેશે અને 5 વાગે ipo બંધ થશે.
      સમય લંબાવશે નહીં

      🔹 *18 તારીખે જેના ડિમેટ ખાતા માં SBI બેન્ક ના શેર હોય એ શેર હોલ્ડર ગણાશે*
      🔹 *(Record date for Share holder category is 18-02-2020)*

      🔹 નેટ ક્વોટા માં 15000 ની અરજી અને શેર હોલ્ડર ક્વોટા માં 2 લાખ સુધી ની અરજી કરી શકશો.

      🔹 શેર હોલ્ડર ક્વોટા માં 15000 કરતા મોટી અરજી 2 લાખ સુધી ની કરવામાં ફાયદો છે.

      🔹 જો શેર હોલ્ડર કવોટા માં 2 લાખ થી વધુ રકમ ની અરજી કરવી હોય તો 15000 વાળી નાની અરજી રિટેલ નેટ ક્વોટા માં કરી શકશો નહીં.

      🔹 ફોર્મ બેન્ક માં આપતા પહેલા બેન્ક માં બેલેન્સ રાખવી.

      🔹 પહેલા દિવસે જ બેન્ક માં ફોર્મ સબમિટ કરી દેવા માં સલામતી છે..કારણ કે બેંકો ને શેર હોલ્ડર ક્વોટા ના લીધે ડબલ લોડિંગ છે.

      No. It will be like mini HNI.

      In Ujjivan Small Fin bank , max limit for Shareholder quota was 2 lakh.

      Here, there is no limit.

      In Shareholder quota, the limit is not defined. You can apply as many lots as you want. It is similar to HNI quota, where shares are alloted on proportionate basis.

      As per today’s discussion at HNI meet.

      Total Mutual Funds borrowing capacity is around 4lacs CR and as per normal they all NBFCs can borrow max 20% of total 4lac cr (subject to individual NBFCs Net worth) so they were predicting on a higher side of 1.3 1.4 lack Cr incl both HNIs.

      Both HNIs means Shareholder quota and normal HNI.

    SBI Cards IPO will be kept open for 4 days instead of 3 days.

    4th day will only be for Retail, HNI and shareholders. Biding on 4th day will be compulsory closed at 5pm. No extension will be given as directed by SEBI.

    Individual with SBI shares in their DP ACCOUNT as on 18th Feb 2020 (the day RHP was filed) can apply in both – Retail and shareholders category if application amount is retail.

    HNI application can be made either of the one category. So HNI subscription will get divided. Funding will be for 8 days this time as issue will be open for 4 days instead of 3 days.

      How many shares we had in our dp account to apply share holders category, minimum/limit shares?

      @marketwizard
      What will be more favorable choice for retailers, either to apply from shareholder category or to apply from RII category? from the point of view of getting allotment
      thank you in advance

      Is there any bifurcation in shareholder quota for Retail or HNI…..

      Allottment to retail shareholders category will be like non shareholders retail category? One lot first to each applicant and rest Proportionate?

      In retail category you can apply in both shareholders (Retail) as well non shareholders (Retail)

      As I understand, Individual with SBI shares in their DP ACCOUNT as on 18th Feb2020 can apply in both.
      My doubt is whether we can apply Rs. 2 lac each in individual and shareholder quota or Rs. 2 lac in Individual and no limit in Shareholder quota or only Rs. 2lac in both the category.
      Market Wizard , please clarify.
      thanks

        Retail investor definition is they can’t apply above 2 lakh.

        HNI investors must apply above 2 lakh.

        In SBI Card, Retail has option to apply both in Retail and Shareholder quota , however, HNI have the option to apply, either in HNI or shareholder quota.

        Treat SBI card is giving you an option to apply from one PAN, Retail, and Shareholding quota, both.

        If you are retail, you can apply up to 2 lac in retail and up to 2 lac in shareholding quota.

        If you are HNI, you must apply above 2 lac in HNI quota or above 2 lac in shareholding quota. They don’t have a choice.

        Now it is clear that in shareholder quota, Retail and HNI both can apply.

        The competition will be played between Retail and HNI. As in shareholding quota, the shares will be given on a proportionate basis, so whoever applies big, will get shares accordingly. It is not like a lottery system. For HNIs dilemma is they cant apply simultaneously in both, so they will see subscription data and apply on last day.

        Retail:

        If you are a retail investor, and have say 50 lac available in the account and have 5 accounts with shareholder quota available.

        Apply 4 retail applications.

        One HNI application in shareholder quota or normal quota depending upon last day subscription.

      @ Market Wizard

      Does that mean retail and HNI can’t apply on 1st, 2nd and 3rd day? They can only apply on 4th day. Can you please confirm?

    SBI Cards IPO – Schedule *(Almost Final)*

    26th Feb – Announcement of Price Band
    28th Feb – Anchor Investors Allotment
    02nd Mar – Offer Opens
    05th Mar – Offer Closes (For All except RII)
    06th Mar – Offer Closes (For RII)
    11th Mar – Finalisation of Basis of Allotment
    12th Mar – Unblocking of ASBA Accounts
    13th Mar – Credit of Equity Shares to Depository Accounts
    16th Mar – Commencement of Trading on NSE/BSE

    Price Band @750-755

    SBI Cards IPO – Issue Information *(Almost Final)*

    Issue Opens on: 02 March 2020
    Issue Closes on: 05 March 2020
    Issue Type: Book Built Issue IPO
    Issue Size: 13,71,49,315 Shares
    Face Value: Rs.10/- per Share
    Issue Price: Rs.750 – Rs.755 per Share *(Almost Final)*
    Discount: Rs.15/- (for Employees)
    Market Lot: 19 Shares
    Listing At: NSE, BSE

    Equity Shares outstanding prior to the Issue = 93,23,34,278 Shares
    Employee Reservation of 18,64,669 Shares @740/- = Rs.137.99Crs (after discount of Rs.15/-)
    SBI Shareholders Reservation of 1,30,52,680 Shares @755/- = Rs.985.48 Crs (Discount – NIL)
    Net Offer for Sale of 11,56,09,450 @755/- = Rs.8,728.51Crs
    Fresh Issue of 66,22,516 @755/- = Rs.500.00Crs
    Equity Shares outstanding after the Issue = 93,89,56,765 Shares

    Category-wise Break up:
    Anchor – 3,66,69,590 Shares = 2,768.55Crs
    QIB – 2,44,46,393 Shares = 1,845.70Crs
    NII – 1,83,34,795 Shares = 1,384.28Crs
    RII – 4,27,81,188 Shares = 3,229.98Crs (Lot size: 19 = 22,51,641 Forms)
    SBI Shareholders – 1,30,52,680 Shares = 985.48Crs
    Empl. Quota – 18,64,669 Shares = 137.99Crs (@740 per Share)
    Total Issue – 13,71,49,315 Shares = 10,351.98Crs.

    Subscription required for 1X
    RII = 22,51,641 Forms
    NII = 1,384.28Crs
    SH = 985.48Crs

    On 19th Feb 2020

    GMP Rs. 271/276

    Application :Rs. 3640

    Subject to Rates : Rs. 4420

    Hi,
    How many lots a pan holder can apply in order to get the allotment.
    Because I applied 1 lot for Indiamart/CSB and did not get it.
    Also, IRCTC I applied for 3 lots, I did not get it.
    What is the recommendation?

      Apply 1 lot from a PAN number… Open different Dmant accounts of your family members to increase your chance.

    The IPO is likely to be priced in a band of Rs 690-700 per share, the bankers said. The Rs 9,500-crore initial public offering of SBI Cards and Payments Service is likely to be launched in the first week of March, according to bankers to the issue.

    SBI Cards IPO – Issue Information *(Tentative)*

    Issue Opens on: 28 February 2020
    Issue Closes on: 03 March 2020
    Issue Type: Book Built Issue IPO
    Issue Size: 13,72,83,555 Shares
    Face Value: Rs.10/- per Share
    Issue Price: Rs.730 – Rs.740 per Share *(Tentative)*
    Discount: Rs.10/- (for Employees)
    Market Lot: 20 Shares
    Listing At: NSE, BSE

    Hello! Market Wizard

    I would apply with one account only ( I hold SBI Share in that DEMAT). Please let me know how to apply , Which Category (Or categories, Shareholder, Retail etc) and Amount per category to get at least one lot.

    My way of subscribing would depend on your answer as there is a lot of confusion being created everywhere about this.

      Walkie, please do not get into any confusion. Let the RHP be filed and then we will take decisions accordingly. By next week, RHP should be filed.

        Thank you

        But please let me know once we have the strategy for retail share holders in place (For sure shot allotment). Also can i use normal ASBA (Netbanking application) or is upi mandatory. Please let me know.

    SBI Cards, SBI MF and SEBI have not yet responded to requests for comment by Business Standard.

    “One of our group companies, SBI Funds Management, is involved in proceedings initiated against it by SEBI…” SBI Cards’ draft offer document stated, as seen by the publication.

    SEBI has issued show cause notices, to which SBI Funds has responded, but the market regulator has not yet passed an order, the draft offer said.

    SEBI, on February 5 modified the norms for initial public offerings (IPOs), which makes it unclear if there will be a delay on SBI Cards’ debut on stock exchanges.

    According to the older norms framed in 2006, observations in draft order documents have to be kept in abeyance for 90 days from the date of the show cause notice, or from the filing of the draft offer, whichever is later.

    The newer guidelines do away with the abeyance period in cases where the show cause notice was given to the entity in a adjudication proceeding.

    This is now official … SBICards IPO delayed (compulsory cooling off) by SEBI due to matters relating to investigations in SBI Mutual Fund (SBI associate company)

    On 5th February 2020
    GMP Rs. 248/254
    Application :Rs. 3375
    Subject to Rates : Rs. 4135

    On 3rd February 2020
    GMP Rs. 246/251
    Application :Rs. 3380
    Subject to Rates : Rs. 4120

    SBI Cards IPO Threats/Weaknesses:

    *Loss or reduction in the level of support received from

    *Competition from other credit card issuers and payment solutions providers.

    *Company may not be successful in implementing growth strategies or penetrating new markets or services.

    Strength of SBI Cards:

    1) SBI Cards and Payment Services Limited is the 2nd largest credit card provider in the country behind leader HDFC Bank, with a card base of over 9 million.

    2) SBI Cards has offices in over 130 cities in India.

    3) It has an extensive product portfolio, which includes premium, classic, travel & shopping, exclusive and corporate cards, to cater to both individual and corporate needs.

    4) The dedicated and customer-oriented approach of SBI Card has won various industry accolades for customer service, branding, product innovation, and marketing.

    On 31st January 2020
    GMP Rs. 246/251
    Application :Rs. 3380
    Subject to Rates : Rs. 4120

    SBI Card IPO will create value for its investors in long term. Reason?

    Financially:

    1) They have around 18% market share in India for credit card industry.
    2) Having Brand name ‘SBI’ where bank branches are already pushing Credit Cards as part of cross selling.
    3) Increase in E-commerce transactions
    4) Brand partnership like other banks such as Allahabad Bank, Kartnataka Bank, South Indian Bank, Federal Bank, KVB etc also with other brands Vistarta, Ola, Apollo, IRCTC etc

    Technologically they are ahead of others:

    1) Using SBI card mobile app you can make payment using NFC option like samsung pay, apple pay. You no need to carry your card itself which reduces the Fraud.
    2) Using SBI card mobile app you can scan ’n’ pay Bharat QR code who is registered as merchant which eliminates the third party like Paytm etc

    On 28th January 2020
    GMP Rs. 245/250
    Application :Rs. 3330
    Subject to Rates : Rs. 4145

    On 27th January 2020
    GMP Rs. 245/250
    Application :Rs. 3330
    Subject to Rates : Rs. 4145

    SBI Cards IPO – Schedule *(Tentative)* *(Revised)*

    28th Feb – Announcement of Price Band (Target is to make formal announcement within February)
    03rd Mar – Anchor Investors Allotment
    04th Mar – Offer Opens
    06th Mar – Offer Closes
    12th Mar – Finalisation of Basis of Allotment
    13th Mar – Unblocking of ASBA Accounts
    16th Mar – Credit of Equity Shares to Depository Accounts
    17th Mar – Commencement of Trading on NSE/BSE

    SBI Cards IPO – Issue Information *(Tentative)*

    Issue Opens on: 04 March 2020
    Issue Closes on: 06 March 2020
    Issue Type: Book Built Issue IPO
    Issue Size: 13,76,69,655 Shares
    Face Value: Rs.10/- per Share
    Issue Price: Rs.690 – Rs.700 per Share *(Tentative)* *(Revised)*
    Discount: Rs.10/- (for Employees)
    Market Lot: 21 Shares
    Listing At: NSE, BSE

    Equity Shares outstanding prior to the Issue = 93,23,34,278 Shares
    Employee Reservation of 18,64,669 Shares @690/- = Rs.128.66Crs (after discount of Rs.10/-)
    SBI Shareholders Reservation of 1,30,52,680 Shares @700/- = Rs.913.69 Crs (Discount – NIL)
    Net Offer for Sale of 11,56,09,449 @700/- = Rs.8,092.66Crs
    Fresh Issue of 71,42,857 @700/- = Rs.500.00Crs
    Equity Shares outstanding after the Issue = 93,94,77,135 Shares

    Category-wise Break up:
    Anchor – 3,68,25,692 Shares = 2,577.80Crs
    QIB – 2,45,50,461 Shares = 1,718.53Crs
    NII – 1,84,12,846 Shares = 1,288.90Crs
    RII – 4,29,63,307 Shares = 3,007.43Crs (Lot size: 21 = 20,45,872 Forms)
    SBI Shareholders – 1,30,52,680 Shares = 913.69Crs
    Empl. Quota – 18,64,669 Shares = 128.66Crs (@690 per Share)
    Total Issue – 13,76,69,655 Shares = 9,635.01Crs.

    Subscription required for 1X
    RII = 20,45,872 Forms
    NII = 1,288.90Crs
    SH = 913.69Crs

    SBI Cards IPO – Financial Information (Basis of Valuation)

    EPS for FY16-17 >>> Rs.4.75 (Page #93 of DRHP)
    EPS for FY17-18 >>> Rs.7.40 (Page #93 of DRHP)
    EPS for FY18-19 >>> Rs.9.43 (Page #93 of DRHP)
    EPS for H119-20 >>> Rs.7.79 (Page #93 of DRHP)

    RoNW for FY16-17 >>> 26.00% (Page #94 of DRHP)
    RoNW for FY17-18 >>> 25.00% (Page #94 of DRHP)
    RoNW for FY18-19 >>> 24.00% (Page #94 of DRHP)
    RoNW for H119-20 >>> 17.00% (Page #94 of DRHP)

    NAV as on September 30, 2019 was Rs.46.99 (Page #94 of DRHP)

    Listed Industry Peer Group (Page #94 of DRHP): NONE

    SBI Cards IPO – Issue Size / Price per Share

    If, Issue Size = Rs.8,500 Crs … Then, Share Price = Rs.618/-
    If, Issue Size = Rs.9,000 Crs … Then, Share Price = Rs.650/-
    If, Issue Size = Rs.9,500 Crs … Then, Share Price = Rs.685/-
    If, Issue Size = Rs.10,000 Crs … Then, Share Price = Rs.725/-
    If, Issue Size = Rs.10,400 Crs … Then, Share Price = Rs.750/-

    SBI Cards IPO – *Market’s Current Estimates of oversubscription*:

    RII = 30.00L Forms = 1.47X Applic. wise (Avg allotment of ~14.32 shares per lot)
    NII = 165K Crs. = ~128.02X
    SH = 115K Crs. = ~125.86X

    Interest cost *@14.00%p.a.* for 7days = 187.95paise for 1X

    Thus, for NII the costing = 128.02 X 187.95paise = Rs.240.68 per share (= GMP)

    And, for RII the costing = 14.32 X 240.60 = Rs. ~3446/- (= Kostak)

    Thus, for SH the costing = 125.86 X 187.95paise = Rs.236.55per share (= GMP)

    SBI Cards IPO – *GMP Estimated*
    GMP 243 +/- 2
    Kostak 3460/- +/- 50

    SBI Cards IPO – *Breakeven / Justification of the current GMP*

    Assuming:

    1) The issue size to be of *Rs.9,650 Crs*
    And
    2) A stupendous demand for leverage, will allow the NBFCs to make hay while the sun shines, and giving them the opportunity to charge a higher rate of interest of *14%pa for 7 days*

    In that case:

    A) The NII category size will be Rs.1,289Cr and the interest cost will be *Rs.240/-* … only if NII category receives appllications worth approximately *Rs.1.65L Crs.*

    Additionally,

    B) The SBI Shareholder category size will be Rs.914Cr. and the interest cost will be *Rs.240/-* … only if SBI Shareholder category receives appllications worth approximately *Rs.1.15L Crs.*

    To my mind these numbers look insane, and hence the current GMP of Rs.240/- beats all sense of logic from this point of view.

    However, the collective wisdom of the market is supreme. Hence, shall be interesting to watch how the Grey Market Premium moves over the next 3-4 weeks

    SBI Cards IPO – *Ultimate Beneficiaries of the IPO proceeds*

    Fresh Issue is only of Rs.500Crs. (Money to be received by SBI Cards and Payment Services)

    And the Offer for Sale is of 130,526,798 Equity Shares

    Out of which:
    A) SBI is selling 37,293,371 Equity Shares (Money to be received by SBI Bank ~Rs.2,611Crs)
    B) CA Rover Holdings is selling 93,233,427 Equity Shares (Money to be received by an entity ultimately controlled by the *Carlyle Group* ~Rs.6,526Crs)

    So it is definitely not an IPO by the Government of India. However, please note the *largest beneficiary of the proceeds of this IPO will be an American Private Equity Fund*.

    On 25th January 2020
    GMP Rs. 246/254
    Application :Rs. 3350
    Subject to Rates : Rs. 4120

    On 24th January 2020
    GMP Rs. 246/253
    Application :Rs. 3365
    Subject to Rates : Rs. 4130

    On 23rd January 2020
    GMP Rs. 247/254
    Application :Rs. 3360
    Subject to Rates : Rs. 4120

    Need guidance as SBI employees has already reservations within allotment of 5 lacs but what is the chances of getting allotment.

    SBI Cards’ return on assets stood at 4.8 percent in 2018-19, according to its IPO prospectus. The industry average for the cards business stands at 3.5 percent.

    That’s better than RoA of banks’ overall business that stood between 0.3 and 2 for State Bank of India and five of its top private peers as of September.

    On 22nd Januay 2020
    GMP Rs. 243/248
    Application :Rs. 3320
    Subject to Rates : Rs. 4130

    On 21st January 2020
    GMP Rs. 242/247
    Application :Rs. 3340
    Subject to Rates : Rs. 4130

    In credit card Industry, the customers are classified into three categories:

    1. Revolvers- It is the one who does big-ticket size spending and later on converts the dues into EMIs. Now, we all know the credit card companies charge hefty interest rates, so, revolvers are basically the most profitable customers for credit card companies.

    2. Transactors- A transactor is a consumer who pays their credit card balance in full and on time every month. Transactors do not carry a balance from month to month; they always pay their credit card bills in full by the due date. Transactors do not pay interest or late fees.

    3. Defaulters- One who does not pay dues of credit card companies. Such customers are a loss to the credit card companies.

    Out of 100 customers, 20-25 are revolvers, <10 are defaulters, and 65-70 are transactors.

    On 18th January 2020
    GMP Rs. 247/253
    Application :Rs. 3450
    Subject to Rates : Rs. 4245

    Tentative news…
    *SBI Cards IPO*

    IPO Open: *12*-February -2020
    IPO Close: *14*-February -2020
    Price Band: *₹660 – ₹680* Per Share
    Lot Size: *22* Share
    Minimum Amount: *₹14,960*

    Latest Grey Market Premium *248-252*

    SBI Cards and Payment Services
    Open : 20-01-2020
    Close : 22-01-2020
    Price : 617 to 619
    Market Lot : 26 Shares
    Registrar : Link intime India Pvt Ltd
    Lead Manager : Axis Capital, BoA Merrill Lynch, HSBC Securities, Kotak Mahindra Capital

    On 17th January 2020
    GMP Rs. 247/253
    Application :Rs. 3430
    Subject to Rates : Rs. 4260

    As per info from BRLM, the SBI Card IPO have been deferred and most probably hit after budget.

    On 16th January 2020
    GMP Rs. 258/265
    Application :Rs. 3530
    Subject to Rates : Rs. 3260

    On 15th January 2020
    GMP Rs. 257/264
    Application :Rs. 3525
    Subject to Rates : Rs. 3250

    On 14th Jan 2020
    GMP Rs. 256/264
    Application :Rs. 3550
    Subject to Rates : Rs. 3250

      Not yet out, as per internal sources DRHP may get the final nod from SEBI shortly.

    Following are the key USPs for SBI card IPO definitely one should invest into it.

    1.Growing amount of credit culture in India.
    2.Credit card has become a lifestyle for Millennials.
    3.Profitability buys companies and post good set of numbers as company has been consistently 4.getting good amount of interest and fees based income.
    5.Compounding looks much easier and better in this type of businesses.
    .It is the business of future

    On 11th Jan 2020
    GMP Rs. 252/257
    Application :Rs. 3560
    Subject to Rates : Rs. 3240

    GMP Rs. 258/262
    Application :Rs. 3500
    Subject to Rates : Rs. 3200

    On 10 January 2020
    GMP Rs. 247/252
    Application :Rs. 3450
    Subject to Rates : Rs. 3250

    Here’s the list of 20 big IPOs that could be listed in 2020:

    1. SBI Card
    2. Eqitas Small Finance Bank
    3. HDB Financial Services
    4. Bajaj Energy
    5. PNB MetLife India
    6. UTI AMC
    7. HDFC Ergo
    8. Kotak Mahindra AMC
    9. Aditya Birla AMC
    10. Reliance Jio & Reliance Retail
    11. Axis Bank AMC
    12. L&T AMC
    13. Exide Life Insurance Company
    14. Jeevansathi.com
    15. Tata Technologies
    16. Burger King
    17. Montecarlo
    18. EaseMyTrip
    19. Mazagon dock limited
    20. NSE Ltd.

    Check out the list of Top 10 IPOs in 2020.

    1. SBI Cards IPO

    2. UTI AMC IPO

    3. Burger King IPO

    4. Home First Finance IPO

    5. Equitas Small Finance Bank IPO

    6. NSE IPO

    7. IREDA IPO

    8. EaseMyTrip IPO

    9. Computer Age Management Services IPO

    10. EESL IPO

    On 09 January 2020
    GMP Rs. 242/247
    Application :Rs. 3250
    Subject to Rates : Rs. 3250

    Can we buy 1 share now and be eligible for shareholder quota
    Kindly confirm till when we can say share to get benefit like this

    Also confirm if we come under shareholder quota then
    Will I be eligible to apply 2 lots
    1 under retail
    1 under shareholder quota
    From the same account(single pan)

      yes, but it should be below 2 lac though for retail.

    I have purchased 10shares of SBI today so the shares will be credited to my Demat a/c on 09.01.2020. Shall I be entitled to apply in share holder’s reserved quota? Request to reply early.

    Hi Grey market..
    By which date sbi share buying is allowed to be in shareholder quota..??

    On 6th January 2020
    GMP Rs. 235/245
    Application :Rs. 3250
    Subject to Rates : Rs. 3250

    SBI Card IPO Grey Market Premium
    GMP 210-220
    Kostak 2200
    Subject to 3500

    if i buy 1 share of sbi bank now..thn i am eligible to apply for both category share holder nd retail? plzz suggest

    Hi market wizard.. I need to ask 2 questions to you.. I will be very thankful for your help..
    1. Can I still buy sbi share to be in shareholder quota..??
    2. Can I apply in ipo through hdfc asba net banking facality…??

    04 Jan 2020
    GMP Rs. 249/257
    Application :Rs. 3510
    Subject to Rates : Rs. 3520

    You can apply SBI Cards IPO via ASBA available in your bank account. Just go to the online bank login and apply via your bank account by selecting the SBI Cards IPO in the Invest section. The other option you can apply SBI Cards IPO via IPO forms download via NSE and BSE. Check out the SBI Cards forms – click NSE Forms & BSE Forms blank IPO forms download, fill and submit in your bank or with your broker.

    SBI Cards IPO Allotment & Listing:
    Basis of Allotment: 27-Jan-2020
    Refunds: 28-Jan-2020
    Credit to Demat Account: 29-Jan-2020
    Listing Date: 30-Jan-2020

    SBI Cards IPO Market Lot:
    Lot Size: Minimum 25 Shares & Maximum 310 Shares
    Minimum Amount: ₹14832
    Maximum Amount: ₹192816

    SBI Cards IPO Dates & Price Band: (Tentative)
    IPO Open: 20-January-2020
    IPO Close: 22-January-2020
    IPO Size: Approx ₹9500 Crore (Approx)
    Face Value: ₹10 Per Equity Share
    Price Band: ₹614 – ₹620 Per Share
    Listing on: BSE & NSE
    Retail Portion: 35%
    Equity: 130,526,798 Shares
    Discount: ₹17 Per Shares

    Upcoming IPOs in 2020
    Equitas Small Finance Bank
    UTI AMC
    Burger King India
    SBI Cards
    HDFC Fin Services
    Mazagon Dock Shipbuilders
    National Stock Exchange
    IREDA
    RailTel
    EaseMyTrip

    SBI Cards IPO – *Market’s Current Estimates of oversubscription*:

    RII = 30.00L Forms = 1.66X Applic. wise (Avg allotment of ~14.43 shares per lot)
    NII = 220K Crs. = ~191.85X
    SH = 155K Crs. = ~192.15X

    Interest cost *@11.00%p.a.* for 7days = 130.37paise for 1X

    Thus, for NII the costing = 191.85 X 130.37paise = Rs.250.13 per share (= GMP)

    And, for RII the costing = 14.43 X 250.13 = Rs. ~3610/- (= Kostak)

    Thus, for SH the costing = 192.15 X 130.37paise = Rs.250.51 per share (= GMP)

    SBI Cards IPO – *GMP Estimated*
    GMP 250 +/- 1
    Kostak 3600/- +/- 50

    SBI Cards IPO – *Breakeven / Justification of the current GMP*

    Assuming:

    1) The issue size to be of *Rs.8,500 Crs*
    And
    2) A stupendous demand for leverage, will allow the NBFCs to make hay while the sun shines, and giving them the opportunity to charge a higher rate of interest of *11%pa for 7 days*

    In that case:

    A) The NII category size will be Rs.1,147Cr and the interest cost will be *Rs.250/-* … only if NII category receives appllications worth approximately *Rs.2.20L Crs.*

    Additionally,

    B) The SBI Shareholder category size will be Rs.807Cr. and the interest cost will be *Rs.250/-* … only if SBI Shareholder category receives appllications worth approximately *Rs.1.55L Crs.*

    To my mind these numbers look insane, and hence the current GMP of Rs.250/- beats all sense of logic from this point of view.

    However, the collective wisdom of the market is supreme. Hence, shall be interesting to watch how the Grey Market Premium moves over the next 6 weeks

    SBI Cards IPO – * Beneficiaries of the IPO proceeds*

    Fresh Issue is to Rs.500Crs. (Money to be received by SBI Cards and Payment Services)

    And the Offer for Sale is of 130,526,798 Equity Shares

    Out of which:
    A) SBI is selling 37,293,371 Equity Shares (Money to be received by SBI Bank)
    B) CA ROVER HOLDINGS is selling 93,233,427 Equity Shares (Money to be received by an entity ultimately controlled by the Carlyle group)

    So it is definitely not an IPO by the Government of India. However, please note the *largest beneficiary of the proceeds of this IPO will be an American Private Equity Fund*.

    Now give a moment to introspect, would a capitalist fund manager leave an *unreasonable* amount on the table for the IPO investors?

    on 03 Jan 2020
    GMP Rs. 231/238
    Application :Rs. 3010
    Subject to Rates : Rs. 3500

    SBI Cards IPO

    Open: 20/01/2020
    Close : 22/01/2020
    Price: ₹616 – ₹619

    Lot Size: Min. 24 Shares

    Minimum Amount: ₹14832

    Basis of Allotment: 28-Jan-2020

    Refunds: 29-Jan-2020

    Credit to Demat A/c.
    29-Jan-2020

    Listing Date: 30-January-2020

    The below table shows the growth of the number of a credit card( in MIllions) from FY14 to FY19.

    NAME FY-14— FY-15— FY 16—FY 17—FY 18— FY 19— Growth

    a) HDFC Bank = 5.1— 6— 7.3— 8.5— 10.7— 12.5— 19%
    b) SBI Cards = 2.9— 3.2— 3.6— 4.6— 6.3— 8.3— 24%
    c) ICICI Bank = 3.2— 3.3— 3.7— 4.3— 5— 6.6— 16%
    d) Axis Bank = 1.4— 1.7— 2.4— 3.3— 4.5— 6— 34%
    e) Citi Bank = 2.4— 2.4— 2.4— 2.5— 2.7— 2.7— 2%

    Before investing in an IPO, points like- Is it a credible company? I there long – term growth opportunity for the stock? Purpose of the IPO?. And will the stock move upwards after considering the market and the company’s present situation? Purpose of the IPO, should be considered.

    i. Now to understand whether the company is credible check who is the promoter and board members of the company and history of the company.

    ii. To understand the long-term growth look at the business modal of the company, its product/service offerings and evaluate whether these will have future demand in the market. Also analyse how it has grown in the past by going through its financial statements.

    iii. Purpose of the IPO should be very well clear before investing. Subscriber should evaluate whether the IPO is raised for developing the business or for some other purposes which won’t be in favour of the investors.

    iv. And lastly look at what valuation the stock is being issued and what is the present situation of the market. At times subdued market condition can lead to listing the stock at a lower price than its issue. This can be a problem only for investors who are interested in listing gains. For long-term investors, this is not a concern. Rather the only concern should be the first two points mentioned.

    SBI Cards IPO – Issue Information *(Tentative)*

    Issue Opens on: ?? February 2020
    Issue Closes on: ?? February 2020
    Issue Type: Book Built Issue IPO
    Issue Size: 13,82,19,105 Shares
    Face Value: Rs.10/- per Share
    Issue Price: Rs.640 – Rs.650 per Share
    Discount: Rs.10/- (for Employees)
    Market Lot: 23 Shares
    Listing At: NSE, BSE

    Equity Shares outstanding prior to the Issue = 93,23,34,278 Shares
    Employee Reservation of 18,64,669 Shares @640/- = Rs.119.34Crs
    SBI Shareholders Reservation of 1,30,52,680 Shares @650/- = Rs.848.42 Crs
    Net Offer for Sale of 11,56,09,449 @650/- = Rs.7514.61Crs
    Fresh Issue of 76,92,307 @650/- = Rs.500.00Crs
    Equity Shares outstanding after the Issue = 94,00,26,585 Shares

    Category-wise Break up:
    Anchor – 3,69,90,527 Shares = 2,404.38Crs
    QIB – 2,46,60,351 Shares = 1,602.92Crs
    NII – 1,84,95,263 Shares = 1,202.19Crs
    RII – 4,31,55,615 Shares = 2,805.11Crs (Lot size: 23 = 18,76,331 Forms)
    SBI Shareholders – 1,30,52,680 Shares = 848.42Crs
    Empl. Quota – 18,64,669 Shares = 119.34Crs (@640 per Share)
    Total Issue – 13,82,19,105 Shares = 8,982.38Crs.

    Subscription required for 1X
    RII = 18,76,331 Forms
    NII = 1202.19Crs

    Interest cost @7.50%p.a. for 7days = 93.49paise for 1X

    SBI Cards IPO – Financial Information (Basis of Valuation)

    EPS for FY16-17 >>> Rs.4.75 (Page #93 of DRHP)
    EPS for FY17-18 >>> Rs.7.40 (Page #93 of DRHP)
    EPS for FY18-19 >>> Rs.9.43 (Page #93 of DRHP)
    EPS for H119-20 >>> Rs.7.79 (Page #93 of DRHP)

    RoNW for FY16-17 >>> 26.00% (Page #94 of DRHP)
    RoNW for FY17-18 >>> 25.00% (Page #94 of DRHP)
    RoNW for FY18-19 >>> 24.00% (Page #94 of DRHP)
    RoNW for H119-20 >>> 17.00% (Page #94 of DRHP)

    NAV as on September 30, 2019 was Rs.46.99 (Page #94 of DRHP)

    Listed Industry Peer Group (Page #94 of DRHP): NONE

    SBI Cards IPO – Schedule *(Tentative)*

    15th Jan – Announcement of Price Band
    17th Jan – Anchor Investors Allotment
    20th Jan – Offer Opens
    22nd Jan – Offer Closes
    27th Jan – Finalisation of Basis of Allotment
    28th Jan – Unblocking of ASBA Accounts
    29th Jan – Credit of Equity Shares to Depository Accounts
    30th Jan – Commencement of Trading (Target is to List before Budget date)

    THE MOST RELIABLE
    List of Mainboard IPOs IN THE PIPELINE
    (Status as on 20th December 2019)

    A) DRHP Filed – SEBI Approval *Awaited*:

    1) UTI Asset Management Company >>> DRHP date 18-Dec-19
    2) Rossari Biotech >>> DRHP date 18-Dec-19
    3) Equitas Small Finance Bank >>> DRHP date 16-Dec-19
    4) Easy Trip Planners >>> DRHP date 12-Dec-19
    5) Home First Finance Company India >>> DRHP date 29-Nov-19
    6) SBI Cards and Payment Services >>> DRHP date 27-Nov-19
    7) Puranik Builders >>> DRHP date 20-Nov-19
    8) Burger King India >>> DRHP date 04-Nov-19
    9) Route Mobile >>> DRHP date 30-Sep-19
    10) Mukesh Trends Lifestyle >>> DRHP date 30-Sep-19
    11) Montecarlo >>> DRHP date 27-Sep-19
    12) Chemcon Speciality Chemicals >>> DRHP date 08-Aug-19
    13) Shri Bajrang Power and Ispat >>> DRHP date 12-Sep-18

    B) SEBI Approval *Received* *(within the past 5 months)*:

    1) Mazagaon Dock Shipbuilders >>> SEBI Approval 13-Dec-19
    2) Samhi Hotels >>> SEBI Approval 29-Nov-19
    3) Indian Renewable Energy Development Agency >>> SEBI Approval 27-Sep-19
    4) Shyam Steel Industries >>> SEBI Approval 20-Sep-19
    5) Bajaj Energy >>> SEBI Approval 30-Aug-19

    C) SEBI Approval *Received* *(>5 months ago)*:

    6) Angel Broking >>> SEBI Approval 26-July-19
    7) Annai Infra Developers >>> SEBI Approval 12-July-19
    8) Satyasai Pressure Vessels >>> SEBI Approval 21-June-19
    9) Powerica >>> SEBI Approval 07-June-19
    10) Penna Cement Industries >>> SEBI Approval 31-May-19
    11) Emami Cement >>> SEBI Approval 15-May-19

    D) SEBI Approval *Received* *(>8 months ago)*:

    12) Shriram Properties >>> SEBI Approval 09-Apr-19
    13) T & T Infra >>> SEBI Approval 22-Mar-19
    14) Coldex >>> SEBI Approval 15-Mar-19
    15) Antony Waste Handling >>> SEBI Approval 08-Mar-19
    16) Senco Gold >>> SEBI Approval 06-Mar-19

    E) SEBI Approval *Received* *(>10 months ago)*:

    17) Heranba Industries >>> SEBI Approval 22-Feb-19
    18) Uniparts India >>> SEBI Approval 01-Feb-19
    19) Stove Kraft >>> SEBI Approval 23-Jan-19
    20) Chartered Speed >>> SEBI Approval 11-Jan-19
    21) Narmada Biochem >>> SEBI Approval 02-Jan-19

    Following are the key US peas for SBI card IPO definitely one should invest into it.

    1. Growing amount of credit culture in India.
    2. Credit card has become a lifestyle for Millennials.
    3. Profitability buys companies and post good set of numbers as company has been consistently
    4. getting good amount of interest and fees based income.
    5. Compounding looks much easier and better in this type of businesses.
    .It is the business of future

    SBI Cards IPO Strengths:

    2nd largest credit card issuer in India.
    Diversified customer acquisition capabilities.
    Industry expertise and a demonstrated track record of growth and profitability.
    Supported by a strong brand and preeminent Promoters.
    Diversified portfolio of credit card offerings.
    Advanced risk management and data analytics capabilities.
    Modern and scalable technology infrastructure.
    Highly experienced and professional management team.
    SBI Cards IPO Threats/Weaknesses

    Loss or reduction in the level of support received from:

    Competition from other credit card issuers and payment solutions providers.
    Company may not be successful in implementing growth strategies.

    SBI Card IPO Grey Market Premium
    GMP 235 – 237
    Kostak 3050
    Subject to 3550

    Investors who hold SBI shares on the cut-off date (the date of filing RHP with SEBI) are eligible to apply under the shareholder’s category of SBI Cards IPO. As per SEBI, the maximum limit defined for the ‘retail individual shareholders to apply in shareholder category is ₹2 lakhs. SBI shareholders (bidding up to ₹2 lakhs) can also apply under the retail category. Further, if an SBI shareholder is also an SBI employee, he/she is also eligible to apply in all the three categories- RII (up to ₹2 lakhs), Shareholder (up to ₹2 lakhs) and Employees (up to ₹5 lakhs)

    Revenue

    (i) Revenue model – interest income (63%), Fee income (17%) rest is MDR (merchant discount rate).

    (ii)75-80% of MDR goes to card issuer, network charges which are fixed (20-25 bps) rest to the POS machine provider.

    (iii)SBI has floated another company in a JV for POS.

    (iv)48% of every 100 spent is not settled on due date which is the card issuers income. Half of 48% is emi.

    Expenses

    Opex to CV Ratio (contributed value) is used as a metric globally. Formula is net (interest income + MDR + other income = contributed value) – (IT, Operations collection). Opex to CV keeps moving and there is no consistency in this number for SBI cards since the past 3 years

    Others

    (i) ROI and ROE has been very impressive.

    (ii) SBI cards has grown to no 2 in card issuance and spend per card has been very good leading to high net contribution as incremental revenue comes in without any additional cost.

    (iii) Doesn’t see any risk in MDR going away on credit card as there would not be much difference between debit and credit card. Govt wants to increase the spend on non cash transactions especially in tier 2-3 cities.

    (iv) Industry now has 50mn credit cards and 900 mn debit cards.

    (v) Credit Cardholders usually spend much higher than debit cardholders.

    (vi) Almost every cardholder started using wallets and these are limited to low ticket transactions. 90% of wallet holders use credit cards to fund the wallet. UPI and others are competing with debit cards.

    (vii) Break-even for a card issuer – whenever a product is launched in the category and expected life cycle of a card is 5-6 years. Premium cards break even in 9-10 months. 145k p.a. is the spend per card across call cards in India and it is 300k per annul in premium cards. Base level takes 18-21 months to break even. This assumes 60% active spends and 40% inactive spends. 1mn cards is when the business breaks even.

    (viii)Cost power acquisition is 2700 per customer across various channels. SBI cards has 18-20k DSAs, Banca channel helps getting customers against a one time payment and cost is lower. Private banks focusing on their bank customers only which is 60-70%.

    (ix) SBI Cards is no 1 in open market by design. Today Private banks have already has ready customers who are a good target for credit cards. SBI cards customers dont use SBI as their primary bank account and hence need to target the open market.

    (x) Doesn’t see much risk in the business most customers are service class customers of which most are government employees which will not lose jobs. Pvt. Jobs high spenders are about 35% in the portfolio. Unemployment in pvt segment can be 15% so only 5-6% of the overall portfolio can be impacted by unemployment.

    (xi) In tough times first casualty is credit cards followed by car and lastly home loans. If losses go up by 100% and spends come down which will impact the business and then it can go into losses.In India 48% of the spend is interest component and it has consciously been kept this way. In Japan there is no interest income to credit card companies. Co-brand cards help the company get the entire customer base of the co-brand partner

    (xii) SBI Cards launched a base level card an onboarded a large number of e commerce players and is a big success amongst youngsters. Avg spend per card for the portfolio- base customer will take 12 months, mid level takes a bit longer whereas a premium customer will never utilise the entire limit. Average spend in premium is 3 lakhs p.a. while limit is between 10-15 lakhs.

    Strengths

    (i) SBI is leading other PSUs in technology

    (ii) There will never be a challenge of acquiring customers for SBI cards and company only needs to focus on quality of customers they are aquiringOpen market leadership position remains with SBI cards along with freedom to operate

    (iii) Needs only 15-20mn customers from the existing pool of 700mn SBI customers

    Weakness

    Only 1 product and no fallback if something happens to the credit card business
    company has to remain relevant in co brand segment and open market to retain growth (can do this with private banks as well like KVB, IRCTC etc)

    – Prashin, Elara Sales

    @Market Wizard my Q. remains unanswered,
    please suggest tips to have higher chances of allotment in any ipo?
    thank you.

      It is a lottery system. So open 5-10 Demat accounts in the family member name and apply it from all. Rest all depend upon your luck.

        @marketwizrd
        I have heard that before ipo allotment investor scrutiny is done to give allotment to investor and not to trader who is just looking for listing gain, this is done looking past behaviour of investor, so who holds shares after allotment gets higher allotment in IPO & also observed that if new dmat account open 1st time then very very very high probability of allotment
        kindly share your experiance

    I never get allotment in good ipos. I need to confirm a few things before applying this one. I have purchased one sbi share which is in my dmat account with zerodha and i have bank account with HDFC So is it mandatory to apply using Zerodha console with a upi ID? or i can apply through HDFC ASBA and give details of zerodha dmat where sbi share is held?

    I asked zerodha about this but they sent me procedure to apply using upi Id. Please tell me are my applications not getting allotment because i apply using netbanking ASBA instead of upi as told by zerodha?

    @Marketwizard, I am through with your blogs and comments in this forum, I think you have expert knowledge in case of financial market, specially in IPO

    can you pls state that the things to be considered and things to be avoid for high probability of allotment.

    I mean can you please state some techniques through which, one can increase his chances in compare to others, for higher allotment in any IPO?

    @marketwizard
    If I buy sbi share today then in that case will I be eligible for shareholder quota?

    Which data is last date to buy sbi shares and be eligible to apply from shareholder quota

    I also have question about equitas. I think equitas sfb ipo too is coming. So can equitas share be bought on Monday to be eligible for shareholder quota?

    SBI CARD

    Allotment in shareholder quota is proportionate basis unlike in Ujivan or HDFC AMC.

      From where we can check these details, kindly share information source and in HDFC AMC I have observed that whomsoever had HDFC share in their Dmat ac they got the allotment. So is that going to be same with this sbi card ipo?
      Thank you.

    I have bought one share each in all my DMAT accounts toady ( 06 december 2019). Share will come to my DMAT T+2 So will I be eligible for the shareholder quota? Please reply

    Grey market activity started.

    Tradeable rates 135/140.

    Request all IZ members, to buy 1-1 shares of State Bank of India from each Demat account to be elogible under shareholder quota.

    When Carlyle joined them back in 2017, the whole company valuation was 8000 cr.
    Now, it’s valuing at 57000 cr 😱