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11:28-30 - "Come to me, all of you who are weary and over-burdened, and I will give you rest! Put on my yoke and learn from me. For I am gentle and humble in heart and you will find rest for your souls. For my yoke is easy and my burden is light."

10 Apr 2020

STOCK MARKET--What is the most interesting thing about the SBI card IPO?

There are 3 Interesting things about this IPO -
1.      SBI Cards becomes the first pure-play card company to get listed on the stock exchanges.
2.      SBI Cards IPO saw a record number of QIB inflows. The IPO of SBI cards was oversubscribed by a staggering 56 times in the QIB category. (SBI Card 104000 cr, HDFC AMC 93000 cr, DMART 55000 cr, Bandhan Bank 35000 cr, and IRCTC 34500 cr)
3.      The real winner in the valuation game is Carlyle(FII) with a 8.5x return in 3 years!

Whether I would buy SBI Card stock?
SBI Card was the first credit card that I got around 2007. In last 12 years of dealing with them, the services provided by them have been top-notch.
Charge-back requests were dealt with very professionally. Whenever I have to do a transaction during an odd time, I would get a verification call within 15 seconds (you read that right - 15 seconds), by their live transaction monitoring team. In case of a for-ex transaction the currency conversion rate by them was the best among all other credit card providers.

I would often tell my family, “SBI Card doesn’t look like a government run entity. The services are way too good and run professionally. I wish they had their own stock listed in the market.”
My wish seems to be have been fulfilled. SBI Card has recently come up with an IPO and I have invested in it. Even if I am not allotted the IPO, I will invest via the secondary market. I feel, due to the Corona Virus scare, it may not see a bumper listing but from a long term point of view , it may prove to be a great stock to own.
Happy Investing!

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