SBI Cards is a subsidiary of SBI, India’s largest commercial bank in terms of deposits, advances and number of branches as of September 30, 2019, according to the RBI. SBI holds 74 % in SBI Cards and the rest is held by the Carlyle Group. The company is the 2nd largest credit card issuer in the country with a 17.6% and 18.0% market share of the Indian credit card market (number of credit cards) as of 31st March 2019 and 30 September 2019 respectively. In addition, its partnership with SBI provides access to SBI’s extensive network of 22,007 branches across India, which enables it to market credit cards to SBI’s vast customer base of 43.6 Crores customers as of March 31, 2019.


Issue Details

Objects of the issue Fresh Issue- The net proceeds of the Fresh Issue are proposed to be utilized for augmenting the capital base to meet company’s future capital requirements.


To achieve benefit of listing.

Issue Size Offer for Sale- 130,526,798 equity shares

Fresh Issue-  worth Rs.500 Crore

Face value  

Rs.10 Per Equity Share

Issue Price Rs. 750 – Rs. 755
Bid Lot 19 shares
Listing at  


Issue Opens: 2nd March 2020 – 5th March 2020
QIB 50% of Net Issue Offer
Retail 35% of Net Issue Offer
NIB 15% of Net Issue Offer


Financial Performance





Shareholding Pattern:

Shareholding (%)   
     Pre-Issue      Post-Issue
Promoters & Pro. Group 74% 69.5%
CA Rover Holdings 26% 15.9%
Public 14.6%
Total 100% 100%

Source: DRHP, EWAL Research



  • 2nd largest credit card issuer in India with a demonstrated track record of growth and profitability.
  • A well-known promoter with strong brand recognition and leading player in open market customer acquisitions using physical and digital channels in India.
  • Highly experienced and professional management team with advanced risk management and data analytics capabilities.
  • Diversified credit card portfolio and partnerships with leading brands across industries.
  • Modern and scalable technology infrastructure.

Key Highlights:

  • Consistently generating profits from the past 3 years. PAT Increased from 372.85 Cr. in 2016-17 to 862.71 Cr. in 2018-19 at a CAGR of 52%.
  • Total Income increased from 3471.03 Cr. in 2016-17 to 7286.83 Cr. in 2018-19 at a CAGR of 44.89%.
  • 50 % of their revenue comes from Interest income and remaining from fees and other services.

Risk Factors:

  • SBI card is not completely retail focused book. The non-retail focused book (Corporate credit) is volatile & Risky.
  • As fast as company is growing its revenue and PAT, impairments and bad debts have also grown at similar rate.
  • Asset quality has been largely steady for the company, with gross bad loans remaining at close to 2 %.


SBI Cards are the 2nd largest credit card issuer in India, with the 17.6% market share of the Indian credit card market in terms of the number of credit cards outstanding as of March 31, 2019. Their operating model is focused on two main financial needs: transactional needs and short term credit. Company consistently generating profits from the past 3 years. PAT Increased from 372.85 Cr. in 2016-17 to 862.71 Cr. in 2018-19 at a CAGR of 52%.The company is offering a discount of ₹75 per share to eligible employees (Employee reservation).Post issue EPS is expected to be around 28-30 based on forward FY20 estimated earnings. Considering steady performance growth (Cards spend grew at 54.2% CAGR as compared to 35.6% CAGR for the overall industry) with renowned brand value, given all the growth prospects we are bullish on SBI cards. Asking price ₹ 750 – ₹755 looks fairly valued hence, no other listed player in the market thus we advised investors to subscribe the issue for listing gain as well as long term point.


Elite Wealth Advisors Limited does/does not do business with companies covered in its research reports. Investors should be aware that the Elite Wealth Advisors Limited may/may not have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as read more

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