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.
