SBI Cards IPO: Price, Review, Analysis | SBI Cards & Payment Services Limited IPO

Written by Rayden Sam Posted on

State Bank of India is sharing its shares with the public using SBI Cards for Initial Public Offerings. The initial public offering of SBI Cards was lastly opened on March 2.

SBI Cards IPO Price

Introduction of SBI Card: SBI Cards and Payment Services Limited, founded in 1998, is a subsidiary of SBI, India’s largest commercial lender in terms of deposits, credit, and branch network. SBI now owns (together with its nominees) 689,927,363 Equity Shares, accounting for 74.00% of the Company’s Pre-Offer issued, subscribed, and paid-up Equity Share capital. 

The company is the country’s second-largest credit card issuer, with a 17.6% and 18.1% share market of the Indian credit card in the total number of cards as of March 31, 2019, and November 30, 2019, respectively, and a 17.1% and 17.9% share market of the Indian credit card market in fiscal 2019 and the eight months ended November 30, 2019.

Individual and business clients can choose from a variety of credit cards, including lifestyle, rewards, retail, travel, gasoline, banking partnership cards, and corporate cards. SBI Cards has collaborated with several industry leaders, including Air India, Apollo Hospitals, BPCL, Etihad Guest, etc.

As an SBI affiliate, the company has access to the SBI’s enormous network of 21,961 branches throughout India. The collaboration allows it to advertise its cards to a massive client base of 445.5 million people.

Ways to Issue SBI Cards in Public 

There are 2 ways to issue: a Fresh Issue and an Offer for Sale-

1. The Offer for Sale- The purpose of the Offer for Sale is to enable the Selling Shareholders to sell up to Equity Shares that they own. The company will receive no profit from the Offer for Sale.

2. Fresh Issue- The revenue generated of the Fresh Issue, i.e., the gross proceeds of the Fresh Issue less the allocated Offer Expenses to the Company, are intended to be used to increase the capital base to satisfy the company’s future financing needs.

SBI Stock Price
State Bank of India

Current Updates of SBI Card IPO 

Here are some of the current updates of the SBI Card IPO. 

  • Date of SBI Cards IPO: Mar 2, 2020, to Mar 5, 2020
  • Face Value of SBI Cards IPO: ₹10 per share
  • Price of SBI Cards IPO: ₹750 to ₹755 per Share
  • Lot Size SBI Cards IPO: 19 Shares
  • As of 30 September 2022, SBI card shares are trading at 9133.5 INR. 
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