SBI CARDS IPO ( MARCH 2nd to MARCH 5th )

Vu

Can you subscribe for IPOs in upstox??? And also what are the charges

Ab ipo bhi desidime me

Ahead of IPO, SBI Cards sees fintechs, UPI as formidable competition

SBI Cards and Payment Services has stated new-age fintech-led payments mode, including Unified Payments Interface (UPI), as formidable competitors, in a filing of prospectus for its upcoming initial public offering (IPO).

Before going for an IPO, it is mandatory for a company to list out its risk factors so that the public is able to make an informed decision. In its prospectus, SBI Cards said the primary competition for the company continued to be other credit card issuers, and debit card issuers to a certain extent.

However, new players with innovative products have emerged. The credit card company has competitions from businesses that operate their own mobile wallets or extend credit to their customers and other fintech service providers.

“Mobile, e-wallet, and tokenisation platforms, including the increasingly prevalent UPI, may present formidable competition as they are able to attract large payment volumes at low or no payment processing fees to merchants,” SBI Cards said in its prospectus.

SBI Cards expects competition to intensify in future. For example, many credit card issuers have instituted rewards programmes that could be on a par or better in the eyes of the customers.

“As competitive pressures intensify, we may be required to expend additional resources to offer a more attractive value proposition to our cardholders, which could negatively impact our profit margins. In addition, although we continue to benefit from relatively high interest rates on our general purpose credit card portfolio, increasing competition may exert downward pressures on the interest rates we are able to charge our customers, which would ultimately erode our margins,” the company said.

SBI Cards’ asset quality remained largely healthy. As of December 31, the gross non-performing assets (NPAs) as percentage of gross advances was 2.47 per cent, and net NPA as percentage of net advances was 0.83 per cent.

This is a slight deterioration from the March 31, 2019, level when the gross NPA ratio was 2.44 per cent and net NPA ratio was at 0.83 per cent. In March 2018, the gross and net NPa ratios were at 2.83 per cent and 0.94 per cent respectively.

Among other things, the level of the NPAs for a card company is affected by “the general level of economic growth in India, the amount of non-performing loans written-off and our credit approval and monitoring policies.”

Other factors include a rise in unemployment, prolonged recessionary conditions, decline in household savings and income levels, a sharp and sustained rise in interest rates, etc, it said.

Offer is of Sbi ipo, but dramatically first 5-6 lines says about your referal..
Stick to topic.

And don’t mention half information about upstock. It’s not completely free. You have to pay annual AMC and other brokerage.

any broker suggestion who dont charge for demat account ?

Finvasia

Note : Only go for known stock brokers in the market like Major banks, full time brokers (sharekhan, edelweiss) and discount brokers (zerodha, Upstox).

Can anyone tell me how to buy IPO in upstox…thanks for ur help in advance

Share market related loots, stock suggestions, ipo discussion etc are a welcome move and if it become part of desidime, may be this will be set new hight for this platform. ..so this part should also include in desidime… Don’t know how many will be agree? But can give a try for that

I have earlier demat in karvy.. But after disaster.. Shifted to Kotak.. Can anybody confirm how much time does it take to transfer holdings..
Also I had ncd in retail status… Will they be transferred too

I would suggest that ppl should go for an established player like Zerodha which is a solid company and the charges are minimal. Never heard of upstox except for forums where ppl want to earn referrals. The amount is not worth the headache

Motilal oswal has AMC of 200, with first year free (not sure)

Enquire with local office of motilal oswal

I have a Zerodha account…I can purchase SBI Cards IPO using Zerodha right…
Not been in shares for long Time. Always wanted to purchase IPO – Never cud, This time I am planning.

• Always hear IPO price increase one first day itself, so my plan is to sell it off soon. Atleast that’s what I think.

Tats I wat my intention and plan – Earn 20% profit or more – But there wil be some catch right- Can someone clear me.

Anyone wants refercode for upstocks ask me, I’ll guide you how to earn money in stock market, even i have earned 13k in just 3 months, i can show you proof too

Go through this link if you have any questions about this IPO. The community offers answers to most of your questions regarding the IPO. Just be careful about some people who spread misinformation.

https://www.chittorgarh.com/ipo/sbi-cards-ipo...5/

After reading few above comments, word of caution. New comers who don’t know anything about market don’t blindly rush to buy sbicard ipo from open market for instant 20-30% gain. Its not so easy to make money.

How fast can I open a demat and invest in this IPO

in upstock no poa required for sell also no amc for 1st year 2nd year 150 and no brokerage best for ipo
for and help for ipo pm me

Everyone should also understand something that if you have been following credit cards then sbi cards has become very active only in the past few months and they never cared before because they were never interested in the business. You would find them in malls and big bazaar following people aggressively to open accounts and this is a new phenomena earlier I never saw them.

The important part is the customer service is very poor which I faced and the overall service is very poor as compared to other companies. So it needs to be seen if they improve as they are ultimatetly SBI and moreover a part of govt bank so a very laid back attitude.

…Its going to be a Bumper Ipo and I guess it will be oversubscribed by around 120 times…so lottery….and timing suggest nifty expiry will be close to lower end…short at rise to 12350…enjoy…

So shareholder category has more chances of getting more than 1 lot if one applies for say 2 lakhs or so? @rsai01

@rogerthat Bro i have 1 sbi saving account, can i open another sbi saving a/c in different branch/city? or only 1 a/c allowed?

so 2 different answer from 2 different people

Going by the GMP of roughly Rs.350 and an indicative Issue price of Rs.750 SBI Cards is likely to list at a market cap of over Rs.1 Trillion (94 cr shares X 1150). That would make it the most expensive financial services company in India at 19 times P/BV ( at FY20 EBV of Rs.60)
There are multiple triggers to suggest that this valuation can sustain but an IRCTC like performance post listing (4 months on) seems difficult as unlike IRCTC, the management of SBI Cards is leaving little on the table for investors pricing the issue at over 12X book value.
Did you know that Carlyle’s partial exit would value the U.S. buyout firm’s 26% stake at 7 times what it paid in 2017? At even a modest CAGR of 20% over FY20/25 in credit card issuance in India, SBI cards has a lot going for it, but impending risks to its business model remain.
Most people are convinced of an IRCTC like listing for SBI Cards. Of course, they are apples and oranges as far as business is concerned, one is a monopoly while the

Most people are convinced of an IRCTC like listing for SBI Cards. Of course, they are apples and oranges as far as business is concerned, one is a monopoly while the other exists in a cut-throat competitive environment where the mkt leader is exponentially large and deep-pocketed
In India, the no. of debit cards at 830 mn is about 15X more than the credit cards. While a vast number of them may not be ideal credit card customers there must be a sizeable no. the banks can target. Rajnish Kumar had recently said “it is our wish to eliminate the debit cards”
Since the ratio of Credit card/Debit card is so low in India, the system implies a huge growth potential. However, within digital transactions, the share of credit cards (volume and value both) is consistently coming down from FY17 due to the arrival of UPI/Mobile wallets.
After growing at a CAGR of 23% over FY15/18, per card spend seems to have stagnated between FY18/20. Is it bcause the incremental growth is coming from younger custo

As per data, 86% of SBI card issuance is to the salaried class. With a slowing economy and thus a slowing job/salary growth there could be a delinquency risk as was seen during the Lehman crisis when NPAs for SBI Cards jumped over 16%. Though after 12 yrs they are well insulated.
Being the 2nd-largest player in the Indian credit cards market with nearly 18% market share, healthy financial ratios, supported by strong parentage and most importantly the first company to list from the credit card industry would be major rationales behind solid listing gains.
To conclude, SBI Cards could well be the Superstar IPO of 2020 but at 19X BV (on listing) one has to consider the risks. Remember, even the great Bajaj Finance (not strictly comparable) is available at less than 9 times its book value with similar ROCE and ROAs as of SBI Cards.
With the latest trend of most money chasing few high-quality businesses, SBI card is a prime candidate for exponential listing gains. But be cautious.