SBI Cards & Payments Services Ltd (SBI Cards), which is tapping the market with a ₹10,355-crore IPO, has ‘left a lot on the table for investors’ and priced the offering attractively for them, Hardayal Prasad, Managing Director & CEO, has said.
The initial public offering will be open from March 2-4 (for QIB Bidders) and March 2-5 (for others) with a price band of ₹750-755 (discount for employee — ₹75 per share).
Asked if the company, which is the largest pure-play credit card issuer in the country, has left some money on the table for retail investors, Prasad told
Prasad expressed confidence that the company would be able to sustain the consistent financial performance and strong track record of growth in the coming years as well.
The company would, in the coming years, focus its energies on three main aspects — plumbing deep into the 20-crore cardable SBI customers (out of the 44.6-crore SBI customer base); expanding its open market physical points of sale that it operates across India and grow it co-branded offerings, he said.
SBI Cards has grown its business faster than the Indian credit card market over the past three years both in terms of numbers of credit cards outstanding and amounts of credit card spends.
Credit cards spends
From March 31, 2017 to March 31, 2019, its total credit cards spends grew 54.2 per cent CAGR (as compared to a 35.6 per cent CAGR for the overall credit card industry) and the number of its credit cards outstanding grew at a 34.5 per cent CAGR (as compared to a 25.6 per cent CAGR for the overall credit card industry, according to RBI).
“We will aim to do much better than the industry as we have done in recent years,” Prasad said.