How to get sure shot IPO allotment in SBI CARD IPO

Easiest way to get SBI Card IPO allotment is as below.

1.  If you are an SBI employee, then apply under Employee category. Also, if the SBI employee is having already share of SBI, then he is eligible apply under both employees and shareholder category.

SBI employee Limit : 2 Lakhs

2. If you own SBI share, then apply under shareholder category.  Allotment chance will increase if anyone owns SBI stocks and apply via shareholder category. Thats a huge benefit if the subscription is more than 2x.

SBI shareholder Limit : 5 Lakhs

3. Apply from many demat accounts to increase the chance in lottery.

SBI CARD IPO Review and Fundamental Financial Analysis

SBI Cards and Payment Services Ltd is the second-largest credit card issuer in India, with 18.0% market share of the Indian credit card market in terms of the number of credit cards outstanding as of September 30, 2019.

SBI cards is a subsidiary of SBI, India’s largest commercial bank in terms of deposits, advances and number of branches.

Company has 17.9% market share of the Indian credit card market in terms of total credit card spends in the six months ended September 30, 2019.

Company offers an extensive credit card portfolio to individual cardholders and corporate clients which includes lifestyle, rewards, travel and fuel, shopping, banking partnership cards and corporate cards covering all major cardholder segments.

BRAND PARTNERSHIP:

1. They have around 18% market share in India for credit card industry.

2. Having Brand name ‘SBI’ where bank branches are already pushing Credit Cards as part of cross selling.

3. Increase in E-commerce transactions

4. Brand partnership like other banks such as Allahabad Bank, Kartnataka Bank, South Indian Bank, Federal Bank, KVB etc also with other brands Vistarta, Ola, Apollo, IRCTC etc

TECHNOLOGY:

1.Using SBI card mobile app you can make payment using NFC option like samsung pay, apple pay. You no need to carry your card itself which reduces the Fraud.

2. Using SBI card mobile app you can scan ’n’ pay Bharat QR code who is registered as merchant which eliminates the third party like Paytm etc

How to apply for an IPO through the shareholders quota?

The below items are mandatory for investment in IPO through shareholders quota.

1. PAN card
2. Demat account associated with PAN
3. Bank account with Internet Banking access
4. Parent Company’s share in Demat account associated with PAN.

What Happens when an IPO is oversubscribed in India?

When the IPO over subscription happens, the applicant may or may not get the allotment of the shares or the number of lots applied. Depending on the category in which you have applied, the IPO allotment differs in over subscription case:

1. IPO Share Allotment to Institutional Buyers (QIB)

In the QIB category, shares are allocated proportionally. So, if the issue is subscribed by 5 times, then an applicant who has applied for 10 lakh shares will receive 2 lakh shares only.

Merchant bank holds the authority to allot shares with regards to QIBs. Shares in any case are always allotted proportionately to applicants. So, if the shares are oversubscribed by 4 times, then an application of 10,00,000 shares will receive only 2,50,000 shares.

2. IPO Share Allotment to High Net worth Investors (HNI)

HNI also receives allotment on a proportionate basis.

Non Institutional Investors are also categorized as High Net worth Individuals (HNIs). These types of investors usually pump in a large corpus in an IPO. Even financial institutions provide funding to HNIs to invest in an IPO. Although these investors invest a large amount of money in an IPO, it does not necessarily provide them with an advantage of availing the exact number of shares that they have applied for in case an oversubscription scenario. For example: A particular HNI client has applied for 10 lakh shares and the HNI quota is oversubscribed by 150 times. The total shares that will be allotted to him will be 6666. This number is ascertained by dividing the total number of shares applied for by the number of times that it has been oversubscribed.

3. IPO Share Allotment to Retail investors (RII)

The process of allocation differs when it comes to retail individual investors (RIIs). There is an upper limit of Rs 2 lakh for any retail investor who is investing in an IPO. With an aim to calculate the total demand for shares in the retail investors’ category, all the candidates are grouped together and the total number of candidates are calculated. While calculating, if the number of applications are more than the number of shares offered for retail investors, the maximum RIIs who are eligible for the allotment of the minimum bid lot are determined. The total number of equity shares available for allotment to RIIs is divided by the minimum bid lot. This gives the maximum number of RIIs who can be allotted the shares.

For example - If shares worth Rs. 20 lakh need to be allotted to the retail segment and the minimum lot size is Rs. 10,000, only a maximum of 200 applicants will be allotted the shares with the minimum lot of Rs. 10,000.

However, if the number retail investors surpass the maximum RII allottees, then the eligibility for the minimum bid lot will be ascertained on the basis of draw of lots. This is automated and computerized process, leaving no room for partiality.