Is India’s first IPO of a credit card issuer an opportunity with boundless prospects or a victim of arrested development?

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On Friday, SBI Cards and Payment Services posted a 66.41 percent fall in net profit at Rs 83.54 crore for the March-ended quarter from Rs 248.74 crore a year ago. The decline mainly points to a 138 percent jump in impairment

In the morning session, BSE Sensex reclaimed 32,000-mark while Nifty 50 was trading near its crucial 9,400. These five stocks in action today

SBI Cards and Payment Services on Friday posted a 66 per cent fall in net profit at Rs 84 crore for the quarter ended March 31

The credit card company, promoted by the country's largest lender SBI, said the borrowings at the end of the previous fiscal were provisional and subject to audit.

Share price of SBI Cards and Payment Services gained 2.44% to Rs 587.80 compared to the previous close of Rs 573.80 on BSE

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On Friday, SBI Cards and Payment Services posted a 66.41 percent fall in net profit at Rs 83.54 crore for the March-ended quarter from Rs 248.74 crore a year ago. The decline mainly points to a 138 percent jump in impairment

On Friday, SBI Cards and Payment Services posted a 66.41 percent fall in net profit at Rs 83.54 crore for the March-ended quarter from Rs 248.74 crore a year ago. The decline mainly points to a 138 percent jump in impairment

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The company plans to issue new shares worth Rs 500 crore and will offer up to 130.5 million shares for sale

SBI Cards is the second-largest credit card issuer in India, with an 18.1 per cent market share of the market as of November 2019

The second largest card issuer SBI Cards & Payment Services, which is hitting the primary market with a Rs 9,000-crore initial public offering, has set the price band for the share sale at Rs 750-755. The IPO, opening on March 2 and closing on 4, comprises fresh issue of equity shares aggregating to Rs 500 crore and an offer for sale where promoters will offload nearly 13 crore shares. Promoters SBI and Carlyle Group will offload 3.73 crore shares and 9.32 shares respectively. SBI holds 74 per cent in SBI Card and the rest by the Carlyle Group and they will pare their stakes by 4 per cent and 10 per cent respectively, SBI Managing Director Dinesh Khara told reporters kicking of the IPO roadshow. SBI Card's market share in terms of the number of credit cards outstanding is 18 per cent. The pure-play credit card company's gross NPA stood at 2.47 per cent in December 2019 compared to 2.44 per cent in March 2019 and 2.83 per cent in March 2018, he said. SBI Card managing director and

At issue size of Rs 10,355 cr, the offering will be Asia's biggest this year and fourth-largest domestically

Normally, IPOs are open for subscription for three days but SBI Cards IPO will run for four days. The first three days, i.e. from March 2 to March 4, the issue will be open for all bidders

No multi-bagger like IRCTC, but can deliver 50% listing gains, says Ambareesh Baliga, an independent market expert

Siddharth Purohit of SMC Global Securities believes that given the stable RoE of 30% valuation, in terms of P/E ratio is likely to come down to 31x and 22x in FY21 and FY22, respectively from 43x.

The SBI Cards IPO will be a test for investor appetite, which has been battered by the coronavirus outbreak.

The IPO comprises a fresh issue of Rs 500 crore and an offer for sale of 13,05,26,798 equity shares

At the top-end, the stock is valued at 46x its earnings for the first nine months of 2019-20.

The SBI Cards IPO is one of the largest share sale in recent times, both in terms of size and oversubscription

Had it not been for Covid-19 impact, the company would have reported a sharp 80 per cent year-on-year jump in its pre-tax profit to Rs 692 core.