SBI CARD IPO

SBI Cards and Payment Services Ltd
Issue Opens:  March 2, 2020; Issue Closes: March 5, 2020; Price Band: Rs750-755



Key Pointers :     

Started its operations in 1998, SBI Cards (a subsidiary of SBI) 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.

It has 17.1% and 17.9% market share of the Indian credit card market of total credit card spends in FY19 and in the eight months ended November 30, 2019, respectively, as per RBI.

The company has established a proven track record of consistently generating profits over the past three fiscal years. Its net profit has increased from ₹373cr in FY17 to ₹863cr in FY19 at a CAGR of 52.1%. Its ROAA increased from 4.0% in FY17 to 4.8% in FY19.

We recommend “SUBSCRIBE” to the issue from both short term and long-term perspective.