SBI card IPO

March 2, 2020

Here is an investment opportunity you and our customers may not want to miss - SBI Cards and Payment Services (SBI Cards) has come out with its initial public offering (IPO) today. SBI Cards is India's second largest card issuer and subsidiary of State Bank of India (SBI), which is the largest commercial bank of India in terms of deposits, advances and the number of branches. SBI Card plans to raise $1.25 billion from the market by issuing new shares worth Rs.5 billion and offering up to 130.5 million shares for sale.

All retail applications through brokers are compulsorily in Unified Payment Interface (UPI) mode. You and our customers may easily apply for the IPO online using our IPO Online facility launched last year. To apply for the IPO online, all one needs to do is to place the order from any of our trading platforms and use any UPI supporting application (app) to authorise blocking of the amount equivalent to the application amount. It is all super easy but if you still have doubts, watch the four videos given further down this communication to get a handle on the IPO-UPI thing.

Details of the SBI Cards IPO

Company Details : SBI Cards is the second-largest credit card issuer in India, with a 17.6% and 18.1% market share of the Indian credit card market in terms of the number of credit cards outstanding as of March 31, 2019 and November 30, 2019 respectively; and a 17.1% and 17.9% market share of the Indian credit card market in terms of total credit card spends in FY2019 and in the eight months ended November 30, 2019 respectively, according to the Reserve Bank of India. The company offers 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.
Issue Period : Offer opened on: Monday, March 2, 2020
Offer for QIB category closes on: Wednesday, March 4, 2020
Offer for retail and HNI categories closes on: Thursday, March 5, 2020
Price Band : Rs.750 to Rs.755 per equity share
Bid Lot : 19 shares and in multiples thereof
Discount for Employee Portion : Rs.75 per equity share
Issue Size : Rs.10,340.79 crore
Issue break-up : QIB: 50% of the net offer, ie Rs.4,614.26 crore
NIB: 15% of the net offer, ie Rs.1,384.28 crore
RET: 35% of the net offer, ie Rs.3,229.98 crore
SBI Card employees: Rs.126.80 crore
SBI shareholders: Rs.985.48 crore
Listing : National Stock Exchange and Bombay Stock Exchange
Registrar : Link Intime India Pvt. Ltd.
UPI : All retail applications through brokers are compulsorily in UPI mode
Eligible SBI Shareholders : Individuals and HUFs who are the public equity shareholders of SBI as on the RHP, ie February 18, 2020

Watch these 4 videos to know how to apply for the SBI Card IPO online easily

Step 1: Create an UPI ID

Create UPI ID

How to Create UPI ID CTA
Step 2: Apply for IPO online using mobile app or website

Step 3: Authorise UPI mandate to block payment

Authorised UPI ID

Authorised UPI ID CTA

Remember these points while applying for IPOs

  • With Sharekhan, you can now fill and submit your IPO application online at your convenience anytime before an issue closes. This can be done through the Sharekhan app or website.
  • You will need a mobile phone with a SIM linked to your bank account offering the UPI facility and a debit card to create your UPI ID.
  • Currently, UPI works on the following mobile applications:
    Name of App (Supported Platforms) VPA Handle
    BHIM (Android and iOS) @upi
    BHIM Axis Pay (Android) @axisbank
    BHIM SBIPay (Android) @sbi
    Citi Mobile (Android and iOS) @citi | @citigold
    Google Pay (Android and iOS) @okhdfcbank | @okaxis
    HSBC Simply Pay (Android and iOS) @hsbc
    iMobile by ICICI Bank (Android) @icici
    Phone-Pe (Android and iOS) @ybl
  • To avoid rejection, download the latest version of the app.
  • Remember to select UPI as the payment option in the IPO application form by providing your UPI ID.
  • As soon as you submit your application through the mobile app or website, you will receive an SMS from National Payments Corporation of India (NPCI) informing you that your UPI mandate has been generated.
  • The app passcode and the UPI PIN can be different; remember to enter only the UPI PIN while authorising the UPI mandate. Note that you should not share your UPI PIN with anyone.
  • If you forget the UPI PIN, simply reset it instead of entering a wrong one.
  • If the transaction gets through, you will receive a Transaction is successful message on your mobile.
  • There are two possible scenarios post-allotment: On full allotment, funds will be debited from your account. If there is no allotment of shares, the blocked funds will be released after the end date or expiry date of the UPI mandate.
Published by Team Internal Communications
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