SBICARD IPO NOTE

                                                           IPO NOTE  SBI  CARDS

SBI Cards is the second-largest credit card issuer in India both in terms of numbers of credit cards issued and amount of credit card spends, with 9.46 million credit cards issued as on September 30, 2019 and Rs.1,032.65 billion in total credit card spends in fiscal 2019. SBI Cards operate a nationwide business with a substantial cardholder base spanning across India’s 8 largest metropolitan areas, India’s tier II and tier III cities as well as its rural areas.

                promoters  having 69% of holding  after ipo. SBI Cards credit card portfolio caters to individual cardholders and corporate clients, and includes lifestyle, rewards, travel and fuel, shopping, banking partnership cards and corporate credit cards. It offers four primary SBI branded credit cards: SimplySave, SimplyClick, Prime and Elite, each catering to a varying set of cardholders needs. In addition, the company also the largest co-branded credit card issuer in India as per CRISIL Report, and offers a wide portfolio of co-branded credit cards in partnership with several major players in the travel, fuel, fashion, healthcare and mobility industries, including Air India, Apollo Hospitals, BPCL, Etihad Guest, Fbb, the IRCTC, OLA Money and Yatra, among others.

credit cards account for 30% to 35% of overall ecommerce payment value

valuation:

fy19 sbicard reported 6999.11  cr sales and 862.72 cr  net profit,  and  an eps  of 10.3.

at the upper price band  of 755 sbicard trading 73.3 pe, it  is  highest ,  but  a growth  prospective of creditcard  business in India it  is  a justifying price,  and  no other peer stock to  compare its  price. I  suggest  to subscribe this  ipo.