SBI Card IPO date price and other details
SBI Credit card
- Spend based
- Instance based
- Subscription based
Growth potential of credit card business in India
Government is boosting cashless payment. E commerce business is also growing. These factors also can help to grow this business.
Strong brand presence of SBI is another big factor that attract people to this IPO. SBI's large network and customer base also can help this company in future growth.
IPO DetailsThey will be together selling 13.05 cr shares. The will be Offer for sale or OFS by promoters and fresh share issue. SBI will be selling 3.73 and 9.32 crore shares will be offloaded by Carlyle group. Total IPO size is around 9000 crores. There will be fresh issue of 500 crores.
Allotment quotas are,
- 35 percent will be allotted to retail investors.
- 15 percent to HNIs.
- 50 percent for QIB.
SBI Card IPO important datesIPO application date is March 2 to 5. Normally IPOs have 3 day wi dows. But in this IPO there will be 4 days. They are expecting high demand from retail investors for this IPO. So last day will be only for retail investors, HNIs and existing share holders of SBI.
Stocks will be credited on 13th March 2020
Will list on NSE and BSE on 16th March 2020
SBI Card basic fundamentalsSBI cards revenue is growing with 44.6 percent CAGR. Here last bar is representing half year.
Revenue in 2017 was 3346 cr. In 2018 was 5187 cr. In 2019 revenue was 6999 cr. In current half year it is 4677 cr. It is represented in graph below.
Profit after tax (PAT) is growing at a rate of 51.2 percent CAGR. Here also last bar is representing half year PAT. So you need to consider that while analyzing this graph.
In 2017 profit after tax was 372.8 cr. In 2018 it was 601.1 cr. In 2019 was 862.7 cr. In first half of year 2020 PAT is 725.8 cr.
Business threats and competitionThe threats faced by SBI credit card business in future will be from UPI and other private credit card players. Competition in credit card business will increase once more companies come to this business. Also UPI transaction's increasing popularity is also a threat. Another threat in credit card industry is that , loan is provided without any collateral. That risk is always there in this business. But high interest rate will adjust its effect in total number.
How to apply for this IPO
Tips to increase chance of getting IPO allotmentSBI share holder quota is 1.31 cr shares. Retails investors can apply in both retail category and share holder quota category. If you hold shares of SBI on 20th February 2020, you are eligible to apply in shareholder category also. To get share in your demat account, you should have bought it 2 days before.
Another trick to increase chance of getting IPO allotment is to open demat account for family members and apply from all of them. But keep total lot to less than 2 lakh rupees. You can apply for free demat account in upstox with below link. If adhaar card is linked with mobile, you can open an account within few minutes. You can keep these accounts to apply upcoming IPOs also.
OPEN ASTHA TRADE ACCOUNT