SBI Cards user comments & discussion

SBI Cards IPO gets SEBI nod; launch by February end

Money Control News

UTI AMC may file IPO papers by Jan 2020 end or the first week of Feb 2020, offer size could be Rs 3,800-4,800 crore.

SBI Cards IPO Updates
Expecting Approval from SEBI by January end.

IPO Open: 12-February -2020 (Tentative)
IPO Close: 14-February -2020 (Tentative)

Price Band: ?660 - ?680 Per Share (Tentative)

Lot Size: 22 Share (Tentative)
Minimum Amount: 14,960 (Tentative)

Surely, SBI Cards IPO will be open in March or afterward.

Anthony Waste Handling Cell Ltd IPO coming by last week of January, Please open a new page for discussion.

SBI Cards IPO

Market''s Current Estimates of oversubscription:

RII = 30.00L Forms = 1.66X Applic. wise (Avg allotment of ~14.43 shares per lot)
NII = 220K Crs. = ~191.85X
SH = 155K Crs. = ~192.15X

Interest cost @11.00%p.a. for 7days = 130.37paise for 1X

Thus, for NII the costing = 191.85 X 130.37paise = Rs.250.13 per share (= GMP)

And, for RII the costing = 14.43 X 250.13 = Rs. ~3610/- (= Kostak)

Thus, for SH the costing = 192.15 X 130.37paise = Rs.250.51 per share (= GMP)

SBI Cards IPO -

GMP Estimated- GMP 250

Kostak 3600/- +/- 50



SBI Cards IPO - Breakeven / Justification of the current GMP

Assuming:

1) The issue size to be of Rs.8,500 Crs
And

2) A stupendous demand for leverage, will allow the NBFCs to make hay while the sun shines, and giving them the opportunity to charge a higher rate of interest of 11%pa for 7 days


In that case:

A) The NII category size will be Rs.1,147Cr and the interest cost will be Rs.250/- ... only if NII category receives appllications worth approximately Rs.2.20L Crs.

Additionally,

B) The SBI Shareholder category size will be Rs.807Cr. and the interest cost will be Rs.250/- ... only if SBI Shareholder category receives appllications worth approximately Rs.1.55L Crs.


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To my mind these numbers look insane, and hence the current GMP of Rs.250/- beats all sense of logic from this point of view.

However, the collective wisdom of the market is supreme. Hence, shall be interesting to watch how the Grey Market Premium moves over the next 6 weeks


SBI Cards IPO - Beneficiaries of the IPO proceeds


Fresh Issue is to Rs.500Crs. (Money to be received by SBI Cards and Payment Services)

And the Offer for Sale is of 130,526,798 Equity Shares

Out of which:

A) SBI is selling 37,293,371 Equity Shares (Money to be received by SBI Bank)

B) CA ROVER HOLDINGS is selling 93,233,427 Equity Shares (Money to be received by an entity ultimately controlled by the Carlyle group)

So it is definitely not an IPO by the Government of India. However, please note the largest beneficiary of the proceeds of this IPO will be an American Private Equity Fund.

Now give a moment to introspect, would a capitalist fund manager leave an unreasonable amount on the table for the IPO investors?

RHP for SBI Cards is not yet filled - Expected in Feb First Week.

Equitas Small Finance Bank, a subsidiary of Equitas Holdings, on December 16 filed the draft red herring prospectus (DRHP) with the SEBI for an initial public offering (IPO).

The IPO will comprise of a fresh issue aggregating up to Rs 550 crore and an offer for sale of up to eight crore equity shares by Equitas Holdings.

Rs 100 Cr - EHL Shareholding Quota
Rs 5 Cr - Employee Quota

The bank expects to raise around Rs 1000 Cr through the issue.

Equitas Holdings Limited (EHL) is the promoter of the company.

JM Financial, Edelweiss Financial Services and IIFL Securities are the lead managers to the issue.

The equity shares of the company will be listed on the BSE and the NSE.

Can I buy SBI shares in Monday 16 December 2019 for shareholders category of SBI card IPO.?

Yes, as of now RHP is pending. You can add few stocks in your portfolio.

Prince Pipes & Fittings IPO - Issue Information *(Tentative)*

Issue Opens on: 17 Dec 2019
Issue Closes on: 19 Dec 2019
Issue Type: Book Built Issue IPO
Issue Size: 30,00,000 Shares
Face Value: ₹.10 per Share
Issue Price: ₹.188 - ₹.200 per Share *(Tentative)*
Discount: NIL
Market Lot: 75 Shares
Listing At: NSE, BSE

Equity Shares outstanding prior to the Issue = 9,00,15,816 Shares
Offer for Sale of 1,00,00,000 @200/- = ₹.200Crs
Fresh Issue of 2,00,00,000 @200/- = ₹.400.00Crs
Equity Shares outstanding after the Issue = 11,00,15,816 Shares

Category-wise Break up:
Anchor - 90,00,000 Shares = 180Crs
QIB - 60,00,000 Shares = 120Crs
NII - 45,00,000 Shares = 90Crs
RII - 1,05,00,000 Shares = 210Crs (Lot size: 75 = 1,40,000 Forms)
Total Issue - 3,00,00,000 Shares = 600Crs.

Subscription required for 1X
RII = 1,40,000 Forms
NII = 90Crs

Sir, I have SBI Insurance shares in my holding, Am I eligible for SBI Cards IPO shareholders quota?

No, SBI Insurance is not the parent company of SBI Cards. To get Shareholder quota you need to have SBIN shares.