March 5, 2020

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SBI Card IPO Final Subscription Data

The Rs 10,355-crore public offer of the country’s second largest credit card issuer SBI Cards and Payment Services has been oversubscribed 26.54 times so far on the final day of bidding, March 5.

State Bank of India The largest public issue since October 2017, which has a price band of Rs 750-755 per share, consists a fresh issue of Rs 500 crore and offer for sale of more than 13 crore shares by parent firm State Bank of India and CA Rover Holdings, an affiliate of global private equity firm Carlyle Group. SBI shareholding will reduced to 69.51 percent after the issue.

According to the global brokerage, SBI Card is likely to deliver superior earnings CAGR of 39 percent over FY19-22 translating into return on average assets (ROAA) of 5.8/5.7 percent and return on average equity (ROAE) of 29 percent in this period.

Credit cards are unique consumer-financial products that offer both credit and payment facilities simultaneously. As such, they have served as the means by which Indian consumer spent Rs 5.5 lakh crore in the nine months ending December 2019 – which has translated into outstanding credit-card loans of Rs 1.4 lakh crore as on December 2019.

Sr.No.CategoryNo.of shares offered/reservedNo. of shares bid forNo. of times of total meant for the category
1Qualified Institutional Buyers (QIBs)24224003138524343157.18
1(a)Foreign Institutional Investors(FIIs)653053788
1(b)Domestic Financial Institutions(Banks/ Financial Institutions(FIs)/ Insurance Companies)353027372
1(c)Mutual funds94407086
2Non Institutional Investors1834141882952639645.23
2(b)Individuals(Other than RIIs)500929224
3Retail Individual Investors(RIIs)427966411070333462.50
3(a)Cut Off78754981
3(b)Price bids28278365
4(a)Cut Off4103202
4(b)Price bids4737802
5(a)Cut Off30453162
5(b)Price bids300530961
Updated as on 05th Mar 2020 at 1900 hrs