The scrip listed at Rs. 661 on NSE. Quite disappointing listing due to External Fear factor. However I strongly suggest HOLD as well as Accumulate, as Medium term investment.The listing of the scrip got affected due to sudden collapse of US Futures market on Sunday. The listing was in Negative ZOne and even on 17th eg on Tuesday, further fall is feared yet The Scrip is expected to give strong returns in the months to come.This is one of the few Portfolio scrip which can offer strong returns once the market stabilises.
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Grey Market News of SBI Cards & Payment Service Ltd#
On 16 March 2020
With US federal reserve offering huge stimulus package and slashing the rate to near zero, the sentiment of foreign investors are expected to improve. SEBI is expected to impose restrictions on Short sale and it will also bring in huge short coverings today. The Indian Market is expected to open in Green Zone which will bring in positive impact on the listing..Grey Market premium shows strong recovery . Earlier During strong bull phase of secondary market , we expected the Listing to be around Rs. 1100 . However with vast changes in external factors, I expect the listing to be around Rs. 850 and gradually move up to Rs. 900 in the intraday session.
Subscription Trend on 05 March 2020 @ 5.40 pm
QIBs 24224003 shares : 57.18 T
NIIs : 18341418 shares : 45.23 T
RIIs : 42796641 Shares : 2.50 T
Emplo :1864669 Shares : 4.74 T
Sharehold : 13052680 Shares : 25.35 T
Total: 100279411 Shares : 26.54 T
SBI Cards mops up Rs 2,769 crore from anchor investors on 28 Feb 20.
SBI Cards and Payment Services has raised Rs 2,769 crore from 74 anchor investors.
Forget R Power: We have a tendency when there is some celebration in a family, we fear something bad,unaspicious will happen. Same way after long long time, we have large as well as rocksolid fundamental IPO of SBI Cards, and we have started fearing repeat of RPower. At the time of RPower, there was global financial crisis and rivalry and also too costly valuation for a company which has yet to start business .
Here we have a company with enviable business and profits and with strong support of SBI ( eg Govt of India ). Do not fall prey to rumour mongers. Retail friends . Apply with full force.
What is at stake ? Rs. 15000 ?? Initially it may give less return but in due course 70 to 100 % return is assured.
Short Note about SBI Cards & Payments Services ltd:
SBI Cards & Payments Services Ltd is India’s second-largest credit card provider. Headquartered in Gurgaon, Haryana/Delhi NCR,SBI Cards is a subsidiary of State Bank of India and has branches in over 50 cities across India.
Which are SBI Cards strengths?
Credit card industry intends to grow 2.5 times in the next five years. Credit card spends have registered a robust growth, growing at a CAGR of 32 per cent from fiscal 2015 to fiscal 2019 to reach Rs 6 lakh crore as of fiscal 2019, and is expected to grow at a healthy rate to reach Rs 15 lakh crore by the end of fiscal 2024, which is 2.5 times over fiscal 2019,
Salient Features of the Company
#Second largest credit card issuer in India with deep industry expertise and a demonstrated track record of growth and profitability
#Diversified customer acquisition capabilities
#Support of a strong brand and pre-eminent promoter
#Diversified portfolio of credit card offerings
#Advanced risk management and data analytics capabilities
#Modern and scalable technology infrastructure
The promoters of SBI Cards & Payments Services ltd
The State Bank of India
Main object of SBI Cards & Payments Services ltd IPO :
This is Offer for Sale & fresh issue of Shares .The objects of the Offer are to achieve the benefits of listing the Equity Shares on the Stock Exchanges .
IPO Particulars of SBI Cards & Payments Services ltd IPO :
IPO Opens on : 02 march 2020
IPO Closes on : 05 March 2020
Issue Type: Book Built Issue IPO
Issue Size : 13,71,49,315 Shares Rs. 9851.98
Employee Reservation of 18,64,669 Shares , Rs.137.99Crs
SBI Shareholders Reservation of 1,30,52,680 Shares,Rs.985.48 Crs
Net Offer for Sale of 11,56,09,450 ,Rs.8,728.51Crs
Equity Shares outstanding prior to the Issue = 93,23,34,278 Shares
Fresh Issue of 66,22,516 @755/- = Rs.500.00Crs
Equity Shares outstanding after the Issue = 93,89,56,765 Shares
Face Value per share : Rs. 10
Price Band: Per Equity Share: Rs. 750-755 ( Tentative )
Employee discount : Rs. 15 per share
Minimum Order Quantity: 19 Shares
Listing will at: BSE,NSE
Shares offered to
Anchor : 3,66,69,590 Shares, 2,768.55Crs
QIB : 2,44,46,393 Shares ,1,845.70Crs
NII : 1,83,34,795 Shares, 1,384.28Crs
RII : 4,27,81,188 Shares,3,229.98Crs (Lot size: 19 = 22,51,641 Forms)
SBI Shareholders :1,30,52,680 Shares, 985.48Crs
Empl. Quota : 18,64,669 Shares,Rs.137.99Crs (@740 per Share)
Total Issue :13,71,49,315 Shares Rs.10,351.98Crs.
? – Price Band announced
Anchor Subscription on 28 Feb 2020
Offer Opens on 02 March 2020 :
Offer Closes on 05 March 2020
Finalisation of Basis of Allotment : 11 March 2020
Unblocking of ASBA : 12 March 2020
Credit to Demat Accounts : 13 March 2020
Listing on NSE & BSE : 16 March 2020
Basis of Valuation for SBI Cards & Payments Services ltd IPO
EPS for FY16-17 :Rs.4.75
EPS for FY17-18 :Rs.7.40
EPS for FY18-19 :Rs.9.43
EPS for H119-20 :Rs.7.79
EPS for 9M19-20 :Rs.12.45
RoNW for FY16-17 : 26.00%
RoNW for FY17-18 :25.00%
RoNW for FY18-19 :24.00%
RoNW for H119-20 : 17.00%
RoNW for 9M19-20 :24.00%
NAV as on September 30, 2019 was Rs.46.99
NAV as on December 31, 2019 was Rs.51.73
Tentative PE Ratio at upper price band Rs. 755 : 47.19
Tentative PBV at upper price band : 13.42
Peer comparison :
Listed Industry Peer Company :None