Equity Analyst, LightStream Research

Oshadhi Kumarasiri

An equity research analyst with over 7 years of experience in multiple sectors. Previously worked for one of the world's largest asset managers with about USD2.5trn in AUM, covering small and micro-cap companies in the consumer sphere across Europe and developed Asia. Also experienced in covering multiple industries including banking, insurance and asset management, retail, tech, telco and REIT.

Equity Analyst

SBI Cards: Oversubscribed But Leveraged Bets Could Be an Overhang

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Capital Markets

SBI Cards & Payment Services / Equity Capital Markets

SBI Cards & Payment Services (SBICARD IN)

<ul>
<li>Launched in October 1998 by the State Bank of India and GE Capital, <a href="https://www.smartkarma.com/entities/sbi-cards-payment" target="_blank" data-smartkarma-citation="entities:28662:1" rel="noopener">SBI Cards (SBICARDS IN)</a> is the second-largest issuer of credit cards and the largest pureplay issuer of credit cards in India.</li>
<li>According to media reports, SBI Cards will open its initial public offering on 2<sup>nd</sup> March 2020, and is likely to be priced at INR 750-755 per share.</li>
<li>Based on the offer price range, SBI Cards is expected to issue 6.6-6.7m new shares to increase its capital by INR 5.0bn.</li>
<li>Additionally, the State Bank of India (SBI) and CA Rover Holdings, which currently own 74% and 26% respectively of SBI Cards’ share capital (prior to the IPO) will sell up to another 130.5m existing shares of SBI Cards.</li>
<li>Thus, the size of the IPO will be in the INR 100bn range.</li>
<li>The details of the SBI Cards IPO were covered comprehensively by fellow insight providers on Smartkarma. Thus, we focus on a few important factors which we think will be useful for prospective investors who are hoping to subscribe to this IPO.</li>
</ul>


Launched in October 1998 by the State Bank of India and GE Capital, SBI Cards (SBICARDS IN) is the second-largest issuer of credit cards and the largest pureplay issuer of credit cards in India.
According to media reports, SBI Cards will open its initial public offering on 2nd March 2020, and is likely to be priced at INR 750-755 per share.
Based on the offer price range, SBI Cards is expected to issue 6.6-6.7m new shares to increase its capital by INR 5.0bn.
Additionally, the State Bank of India (SBI) and CA Rover Holdings, which currently own 74% and 26% respectively of SBI Cards’ share capital (prior to the IPO) will sell up to another 130.5m existing shares of SBI Cards.
Thus, the size of the IPO will be in the INR 100bn range.
The details of the SBI Cards IPO were covered comprehensively by fellow insight providers on Smartkarma. Thus, we focus on a few important factors which we think will be useful for prospective investors who are hoping to subscribe to this IPO.


Mahindra & Mahindra Fin Services Ltd. (MMFS IN)

SBI Card IPO: Good Company Not Worth a 350% Premium But Will Probably Pop Anyway Despite These Risks