SBI Card IPO review: Earn money from credit card business? Top 5 reasons to look at for investors
SBI Cards IPO review: Credit card business will never die down, Jitendra Solanki says; the sector will grow despite challenges from the digital side he adds
SBI Card IPO review: As the Initial Public Offer (IPO) of SBI Card is set for March launch, the buzz around it is growing and investors are keenly following the news to keep them updated. What they want to know is whether they can make money from SBI Card credit card business, which is humming with activity. So, what are the prospects for an investor thinking of buying SBI card stock and whether it will be a safe option with substantial gains? Zee Business Personal Finance expert Jitendra Solanki will share his views on it.
Notably, Jitendra Solanki says that he would recommend investors to go and buy this stock. Solanki feels that SBI Card is likely to do well once it enters the market. here Solanki provides top 5 reasons to buy into SBI Card IPO are:
1) SBI Cards as a company has been doing very well. It has been doing good business in the credit cards domain.
2) Credit card is a kind of business that will never die down. The sector will only grow, he says. This will only propel the growth of the company. The credit card business is there to stay despite challenges from the digital side.
3) SBI is India's second-largest credit card issuer and has a good customer base. The company has done very well in the retail market. Moreover, SBI as a bank has a huge customer base and that augurs well for the growth of the credit card business.
4) Among its competitors, the SBI Card has been able to mark its presence and has been increasing its business. The company has also been using technology to serve their customers. They have been signing good business deals with other players also.
5) All these developments will reflect in the stock's performance
With all these factors in favour of the SBI Cards, the future looks good, Jitendra Solanki says.
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The second-largest card issuer SBI Cards & Payment Services, which is hitting the primary market with a Rs 9000-cr IPO, has set the price band for the share sale at Rs 750-755. The IPO, opening on March 2, comprises fresh issue of equity shares aggregating to Rs 500 crore and an offer for sale where promoters will offload nearly 13 crore shares. Promoters SBI and Carlyle Group will offload 3.73 cr shares and 9.32 cr shares respectively.
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