SBI Cards IPO has received positive ratings from majority of market analysts. State-owned banking major SBI's cards division has witnessed positive growth in the last few years. A review of SBI Cards IPO by Mr. Santosh Meena, Senior Analyst, TradingBells follows....

SBI cards is going to be a very successful IPO both in terms of subscriptions and listing gain because of the following reasons:

• The second-largest player in the Indian credit cards market with nearly 18 percent market share.

• India is under-penetrated in terms of credit card market and the government has a focus on digital transactions.

• The first company to list from the credit card industry.

• It also has the strong parentage of SBI, which provides access to its extensive branch network.

• SBI Card’s total credit card spends grew at a compounded annual growth rate of 54.2 percent over FY17-FY19 compared with an industry average of 35.6 percent.

• It has 18 co-branded partnerships, the highest in the industry compared to other players.

Where we are expecting a listing gain of more than 50% and investors should hold this stock post listing as well.