SBI Cards
Mainboard₹10,341 Cr issue
-12.85%
Listing gain over issue price
Issue size
₹10,341 Cr
1 lot at cut-off
₹14,345
Lot size
19shares
Open
02 Mar 2020
Close
05 Mar 2020
Allotment
11 Mar 2020
Listing
16 Mar 2020
Listing performance
Issue price
₹755
Listed at
₹658
Listing-day close
₹683.20
Latest price
₹545.55
Close on 23 Oct 2026
Listing gain
-12.85%
Return since issue
-27.74%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 02 Mar 2020 – 05 Mar 2020
- Listing date
- 16 Mar 2020
- Face value
- ₹10 per share
- Issue price
- ₹755 per share
- Lot size
- 19 shares
- Total issue size
- ₹10,341 Cr
- Market cap at offer price
- ₹70,890 Cr
- Promoter holding
- 74.00% → 69.51% pre-issue → post-issue
- ISIN
- INE018E01016
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- Axis Capital Ltd.
- Registered office
- Unit 401 & 402, 4th Floor,, Aggarwal Millennium Tower E-1,2,3,, Netaji Subhash Place, Wazirpur, New Delhi, New Delhi
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 3,66,69,589 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 19 shares per lot, in multiples, at ₹755
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 19 | ₹14,345 |
| Retail (max) | 13 | 247 | ₹1,86,485 |
| S-HNI (min) | 14 | 266 | ₹2,00,830 |
| S-HNI (max) | 69 | 1,311 | ₹9,89,805 |
| B-HNI (min) | 70 | 1,330 | ₹10,04,150 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
3,66,69,589
Anchor portion
₹2,769 Cr
at ₹755 per share
Valuation and performance
Valuation at offer price
₹755 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| Market cap | — | ₹70,890 Cr |
About SBI Cards
SBI Cards and Payment Services Limited was incorporated as a private limited company on May 15, 1998, and converted to a public limited company in August 2019. The company is a Non-Banking Financial Company – Systemically Important Non-Deposit Taking Company (NBFC-ND-SI) registered with the RBI. It is the second-largest credit card issuer in India with 17.6% and 18.1% market share as of March 31, 2019, and November 30, 2019, respectively. The company derives substantial benefits from its relationship with its promoter, State Bank of India (SBI), leveraging SBI's vast branch network and customer base for marketing and customer acquisition. The company makes money through interest income on credit card receivables, interchange fees from merchants, late fees, annual card fees, and service charges.
Company Analysis
from RHPSBI Cards and Payment Services Limited is the second-largest credit card issuer in India, offering an extensive credit card portfolio across individual and corporate segments.
SBI Cards and Payment Services Limited was incorporated as a private limited company on May 15, 1998, and converted to a public limited company in August 2019. The company is a Non-Banking Financial Company – Systemically Important Non-Deposit Taking Company (NBFC-ND-SI) registered with the RBI. It is the second-largest credit card issuer in India with 17.6% and 18.1% market share as of March 31, 2019, and November 30, 2019, respectively. The company derives substantial benefits from its relationship with its promoter, State Bank of India (SBI), leveraging SBI's vast branch network and customer base for marketing and customer acquisition. The company makes money through interest income on credit card receivables, interchange fees from merchants, late fees, annual card fees, and service charges.
Financial ServicesCredit CardsPayment Services
Objects of the Issue
- Augmenting capital base to meet future capital requirements p.21
- Augment our capital base to meet our future capital requirements including extending credit to customers, meeting operating expenditure and future working capital requirements arising from business growth ₹4,921.42 million (Net Proceeds) p.93
Issue Structure
- Total Issue
- 137,149,314 Equity Shares aggregating to ₹103,407.88 million
- Fresh Issue
- 6,622,516 Equity Shares aggregating to ₹4,993.25 million
- Offer for Sale
- 130,526,798 Equity Shares aggregating to ₹98,414.64 million (including 37,293,371 Equity Shares by State Bank of India and 93,233,427 Equity Shares by CA Rover Holdings)
- Price Band
- ₹750 to ₹755 per Equity Share
- Lot Size
- 19 Equity Shares (Bid Lot)
- Face Value
- ₹10 per Equity Share
Business Model
The company earns revenue primarily through interest income on revolving and term credit card balances (51.1% of total revenue in nine months ended December 31, 2019), interchange fees and business development incentives (25.1% of total revenue), and other fees including late fees, annual card fees and service charges.
Business Segments
Issues credit cards to individual and corporate clients covering all major cardholder segments in terms of income profiles and lifestyle. The company also has co-branded credit card partnerships with companies in travel, fuel, fashion, healthcare and mobility industries.
Issuance of credit cards to individual cardholders and corporate clients including lifestyle, rewards, travel and fuel, shopping, banking partnership cards and corporate cards
Offers a wide range of personal credit card products across lifestyle, rewards, shopping, travel and fuel, and banking partnership categories, targeting cardholder segments from premium to new-to-credit categories.
Offers corporate credit cards tailored for expense management, travel management, utility payments, vendor payments and other corporate requirements to MNCs, large and mid-sized Indian companies, state-owned enterprises and travel management companies.
Issuance and development of credit cards, payment cards and related payment products; provision of credit facilities to cardholders; merchant establishment relationships and credit card transaction processing.
Establishing payment product centres; identifying and entering into arrangements with merchant establishments; making available payment card facilities through electronic data capture terminals, internet payment gateways, and related infrastructure; providing authorization systems for payment card transactions.
Providing comprehensive BPM services including inventory, embossing, fraud control and tracking, transaction processing, authorizations, credit processing, collections and recovery, customer servicing for payment products, terminal placement, EDC data processing, account management, remittance management, and documentation management.
Issuance of credit cards to consumers and earning of interest income, membership fees, interchange fees, and service charges from credit card operations
Acting as corporate insurance agent for selling insurance policies to credit card customers
Unsecured corporate card exposures backed by liquid securities such as Fixed Deposits and Bank Guarantees
Unsecured corporate card exposures where SBI Cards conducts detailed subjective assessment based on information from the corporate, bureau reports, and third party credit assessment agencies
Retail credit card exposures backed by liquid securities or collateral
Unsecured retail credit card and loan exposures to individual customers based on credit assessment and bureau scoring
Offers four primary SBI Card-branded credit cards (SimplySave, SimplyClick, Prime and Elite) catering to varying cardholder needs across income profiles and lifestyles
Largest co-brand credit card issuer in India with partnerships in travel, fuel, fashion, healthcare and mobility sectors including Air India, Apollo Hospitals, BPCL, Etihad Guest, Fbb, IRCTC, OLA Money and Yatra
Earned on revolving credit card balances and term loan (equated monthly instalment) balances
Comprises subscription-based fees (annual credit card membership fees), spend-based income (interchange fees and foreign exchange markup), and instance-based fees (late fees, reward redemption fees, cash withdrawal fees, overlimit fees, payment dishonour fees, processing fees)
Issuance, sales, design and marketing of SBI-branded credit cards
Development of credit provision strategy, customer acquisition, credit limit allocation, and risk management for payment products
Issuance, sales, design, and marketing of SBI-branded credit cards; credit provision strategy; customer identification and acquisition; risk and credit management; relationship with card associations
SWOT Analysis
Strengths
- • Second-largest credit card issuer in India with strong market position(p.21)
- • Extensive credit card portfolio across major cardholder segments(p.21)
- • Substantial benefits from promoter SBI's large branch and customer networks(p.29)
- • Growing new account acquisition from promoter's customer base(p.29)
- • Strong revenue growth trajectory(p.42)
- • Second largest credit card issuer with deep industry expertise(p.97)
- • Diversified customer acquisition capabilities(p.97)
- • Strong brand and pre-eminent promoter support(p.97)
- • Diversified credit card product portfolio(p.97)
- • Advanced risk management and data analytics capabilities(p.97)
- • Modern and scalable technology infrastructure(p.97)
- • Second-largest credit card issuer with 18% market share and 20+ years of expertise(p.132)
- • Strong CAGR growth exceeding industry: 54.2% vs 35.6% (cards) and 34.5% vs 25.6% (spends)(p.132)
- • Diversified revenue model: 49% non-interest income provides stable composition less susceptible to rate volatility(p.132)
- • Leading co-brand partnerships: 21 fully operational partners, largest in India(p.132)
- • Advanced data analytics and AI capabilities across entire credit card lifecycle(p.132)
- • Access to SBI's vast network: 21,961 branches and 445.5 million customer base(p.132)
- • Scalable technology infrastructure tested to support 3-5x current business volumes(p.134)
- • Consistent profitability with 52.1% CAGR in net profit from FY17 to FY19(p.132)
- • Robust fraud management framework with multiple detection layers(p.157)
- • Multiple national and international fraud prevention awards demonstrating excellence(p.157)
- • Comprehensive AML compliance program with automated solutions(p.157)
- • Automated watchlist screening and transaction monitoring for AML/CFT(p.157)
- • Holistic cyber security framework based on industry best practices(p.158)
- • Well-structured risk management governance with multiple oversight levels(p.158)
- • Established credit card issuer with significant loan portfolio growth(p.239)
- • Diversified revenue streams from multiple sources(p.214)
- • Strong parent backing from State Bank of India(p.254)
- • Significant profitability with growing net profit(p.214)
- • Second-largest credit card issuer in India with strong market position(p.323)
- • SBI parentage provides trusted brand, reputation and extensive distribution network(p.323)
- • Superior growth outpacing industry in credit card spends and outstanding cards(p.323)
- • Technology-driven platform with data analytics and artificial intelligence capabilities(p.323)
- • Diversified revenue model with growing non-interest income reducing interest rate volatility exposure(p.324)
- • Leading open market credit card issuer in India(p.323)
- • Extensive distribution through SBI network of 21,961 branches(p.323)
- • Proven track record of consistent profitability with strong growth trajectory(p.324)
- • Sole issuer of SBI-branded credit cards in India(p.476)
- • Access to SBI's extensive distribution network and branches(p.476)
- • Support from major shareholder SBI for IPO execution(p.472)
Weaknesses
- • Unsecured credit card portfolio creates high credit risk(p.29)
- • Non-proprietary brand and licensing dependency on promoter(p.28)
- • Significant dependence on promoter's support and arrangements(p.29)
- • Heavy reliance on third-party service providers for core operations(p.31)
- • Promoter's recent losses could affect brand reputation(p.37)
- • Dependence on promoter with potential conflicts of interest(p.44)
- • Significant legal proceedings involving promoter(p.45)
- • High levels of indebtedness(p.50)
- • All office locations on leased premises with renewal risks(p.49)
- • Negative cash flow from operating activities(p.50)
- • Material internal control deficiencies and reliance on manual processes(p.44)
- • Dependency on SBI brand and 74% stake creates operational risk if brand is damaged(p.150)
- • High operating expenses: 19.5% of total assets compared to industry focus on cost control(p.124)
- • Significant reliance on outsourced workforce (38,244 outsourced vs 3,883 employees) creates control challenges(p.147)
- • NBFC-ND-SI regulatory classification imposes strict capital adequacy requirements(p.162)
- • Dependence on SBI for key management positions and approvals(p.176)
- • Restricted transfer of shareholding and reserved matters requiring shareholder approval(p.161)
- • Substantial impairment losses and bad debt write-offs(p.259)
- • High finance costs relative to operations(p.257)
- • Significant debt burden with substantial borrowings(p.213)
- • High provision requirements for reward points(p.252)
- • Negative operating cash flow(p.215)
- • High debt-to-equity ratio of 3.91x indicating significant leverage(p.316)
- • High concentration of borrowings from related party SBI(p.313)
- • Rising NPA levels indicate deteriorating credit quality(p.326)
- • Significant operational losses in negative cash flows from operations(p.343)
- • Heavy dependence on short-term funding sources creating refinancing risk(p.345)
- • High volume of ongoing litigation from customers disputing credit card charges and billing practices(p.368)
- • Significant pending litigation involving payment and settlement systems disputes(p.368)
- • Multiple writ petitions challenging company's credit card policies and billing practices(p.365)
- • Company faces challenges in defending billing accuracy and customer credit card fraud claims(p.365)
- • Dependence on promoter SBI, with litigation relating to SBI's roles and representations to customers(p.368)
- • Concentrated shareholder control with limited operational autonomy(p.463)
- • Dependency on SBI for key management positions(p.467)
- • Reliance on SBI licensing agreement for corporate name(p.475)
Opportunities
- • Strong industry growth trajectory with robust credit card spends expansion(p.21)
- • Government initiatives supporting digitalization and cash-less economy(p.21)
- • Co-brand partnership expansion as growth strategy(p.35)
- • Penetration in tier II and tier III cities and underserved markets(p.34)
- • Large untapped customer base of promoter SBI to leverage(p.37)
- • Augmentation of capital base for business growth(p.93)
- • Expansion of credit card portfolio and customer segments(p.93)
- • India's underpenetrated credit card market: only 3% of GDP vs 17% in US, 25% in Hong Kong(p.135)
- • Strong demographic dividend: 37% of population aged 30-59 (working age), median age 28.4 years(p.135)
- • Credit card spends forecast to grow 2.5x from ₹6.1tn (FY19) to ₹15.2tn (FY24) at ~20% CAGR(p.117)
- • Rapid shift to discretionary spending: non-discretionary from 53.4% (FY14) to 46.7% (FY18)(p.106)
- • E-commerce industry CAGR 23-28% forecast to reach ₹9,025bn by FY24 from ₹2,905bn (FY19)(p.115)
- • New-to-credit customer growth at 20% CAGR to 3 million (FY18), expected to continue rising(p.135)
- • Unsecured loans forecast 22% CAGR (FY19-FY24) to ₹14.4tn, with credit cards growing fastest at 23% CAGR(p.113)
- • Digital payments volumes grew 49% CAGR (FY14-FY19), UPI crossed 5 billion mark in FY19(p.111)
- • Expansion through co-branded card partnerships with major Indian companies(p.173)
- • Bank distribution through SBI branches under new Bank Distribution Agreement(p.199)
- • Access to SBI's corporate salary account holders customer base(p.199)
- • Digital payment integration opportunities through SBI platforms(p.199)
- • Rapid expansion of credit card portfolio and customer base(p.239)
- • Growing revenue from fees and services business(p.214)
- • Potential for capital optimization through IPO(p.220)
- • Insurance commission income stream(p.219)
- • India's favorable macroeconomic environment with strong GDP growth and urbanization(p.323)
- • Significant market expansion opportunity given low credit card penetration in India(p.353)
- • Growth in e-commerce and digital payments driving credit card usage(p.354)
- • Expansion of co-branded credit card partnerships across multiple sectors(p.323)
- • Opportunity to penetrate mass and new-to-credit segments(p.354)
- • Growing addressable market through diversified cardholder segments(p.323)
- • Expansion of Payment Products portfolio across customer segments(p.476)
- • Development of credit management and risk strategies(p.476)
- • Public market access and capital raising through IPO(p.473)
- • Expansion through strategic mergers and acquisitions(p.469)
Threats
- • Intense competition from larger established banks with funding and distribution advantages(p.30)
- • Regulatory risk on interchange fees and interest rate caps(p.39)
- • Macroeconomic slowdown affecting cardholder repayment capacity(p.42)
- • Rising competition from mobile wallets, e-wallets and payment solutions(p.30)
- • Cyber-attacks and data security risks affecting operations(p.33)
- • Dependence on third-party payment networks (Visa, MasterCard, RuPay)(p.39)
- • Regulatory changes and compliance burden in heavily regulated industry(p.34)
- • Digital technology adoption reducing value of physical retail distribution(p.46)
- • Interest rate volatility impacting credit demand and margins(p.46)
- • RBI capital adequacy requirements limiting business growth(p.43)
- • Regulatory restrictions on outsourcing and cross-selling(p.46)
- • Financial instability in Indian financial system affecting funding costs(p.51)
- • Regulatory compliance costs from new personal data protection laws(p.49)
- • Risk of interest rate capping on credit card charges(p.49)
- • Natural calamities and contagious disease outbreaks affecting Indian economy(p.52)
- • Intense competition from 74 credit card issuers; top 4 players hold 72% market share(p.125)
- • Competition from e-wallets and UPI: digital transactions grew 49% CAGR; share of non-digital fell from 75% (FY14) to 35% (4MFY20)(p.123)
- • Regulatory risk: changes to KYC norms, PPI rules, and MDR rates could impact business model(p.110)
- • Credit costs rising due to focus on smaller geographies and portfolio expansion(p.124)
- • Economic slowdown risk: GDP growth declined to 6.8% (FY19) from 8.2% (FY17)(p.103)
- • Foreign players losing share; Citi Bank declined from 13% (FY14) to 5% (FY19) market share(p.125)
- • Regulatory capital adequacy and liquidity requirements for NBFCs(p.163)
- • RBI regulatory restrictions on credit card business and unsolicited card issuance(p.166)
- • Mandatory fair practices code and grievance redressal mechanisms imposing operational compliance burden(p.164)
- • Cyber security threats and data breach risks affecting customer information(p.158)
- • Non-performing asset classification and provisioning requirements(p.163)
- • Rising credit risk and deterioration in loan quality(p.239)
- • RBI regulatory constraints on dividend payments(p.206)
- • Interest rate and market risk exposure(p.232)
- • Dependence on State Bank of India as majority shareholder and borrowing source(p.251)
- • Macroeconomic slowdown reducing consumer spending and demand for credit(p.324)
- • Intensifying competition from other credit card issuers and fintech players(p.326)
- • Regulatory restrictions on interest rates and interchange fees(p.327)
- • Rising cost of funds impacting profitability margins(p.325)
- • Increased credit losses and charge-offs from economic slowdown(p.324)
- • Capital adequacy requirements limiting growth and profitability(p.327)
- • Regulatory scrutiny over interest rate charging practices on credit cards(p.368)
- • RBI guidelines and regulatory intervention regarding credit card issuance and operations(p.368)
- • Customer disputes over unauthorized credit card transactions and fraud claims(p.365)
- • Risk of adverse regulatory orders affecting credit card operations and customer policies(p.366)
- • Regulatory restrictions on promoter shareholding post-IPO(p.473)
- • Mandatory compliance with stringent listing regulations(p.473)
- • Risk of shareholder disputes triggering deadlock provisions(p.474)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| State Bank of India | Promoter/Promoter Selling Shareholder | 74% | — |
| CA Rover Holdings | Investor Selling Shareholder | 26% | — |
| State Bank of India | Promoter | 74.00% | 69.51% |
| CA Rover Holdings | Promoter Group | 26.00% | — |
| State Bank of India | Promoter | 74% | — |
| CA Rover Holdings | Promoter | 26% | — |
| State Bank of India | Promoter | 74% | — |
| CA Rover Holdings | Promoter Group | 26% | — |
| State Bank of India | Promoter/Holding Company | 74% | — |
| CA Rover Holdings | Promoter/Holding Company | 26% | — |
| State Bank of India | Holding Entity | — | — |
| CA Rover Holdings | Entity holding substantial interest in voting power of the Company | — | 26% |
| State Bank of India (SBI) | Promoter | — | — |
| CA Rover | Investor Selling Shareholder | — | — |
| State Bank of India (SBI) | Promoter/Shareholder | — | — |
| Carlyle Asia Partners IV, L.P. (CARH) | Promoter/Shareholder | — | — |
| State Bank of India | Promoter Selling Shareholder | — | 50.1% (minimum post-IPO as per Article 53(vi)) |
| CA Rover Holdings | Investor Selling Shareholder | — | — |
Leadership
Ms. Payal Mittal Chhabra · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
SBI Cards IPO FAQs
What is the lot size of SBI Cards IPO?
The minimum lot size of SBI Cards IPO is 19 shares. One lot costs ₹14,345 at the cut-off price.
When does SBI Cards IPO open and close?
SBI Cards IPO opened for subscription on 02 Mar 2020 and closed on 05 Mar 2020.
What is the listing date of SBI Cards IPO?
SBI Cards IPO listed on 16 Mar 2020.