Carlyle to sell 5.1% stake in SBI Cards

Carlyle to sell 5.1% stake in SBI Cards

Shares of SBI Cards and Payment Services plunged 6% to Rs 984 on the NSE in intra-day trade on Friday after nearly 7% of the company’s total equity changed hands on the NSE and BSE.
The US-based private equity (PE) firm Carlyle planned to offload 5.1% stake in SBI Cards and Payment Services. A total of 48 million shares of the credit card company were to be reportedly put on offer in the range between Rs 1,002 to Rs 1,041.3 per share – a discount of 1% and 4.7% to the last closing price of Rs 1,051.7.
As of March 31, 2021, CA Rover Holdings, a subsidiary of Carlyle Group, held 11.61% stake in SBI Cards,as per the shareholding pattern.

Earlier on March 17, 2021, CA Rover Holdings had sold 4.3% stake (40 million shares) in SBI Cards and Payment Services via block deals. The shares were sold at Rs 986 apiece, fetched Carlyle Rs 3,944 crore.
The Washington-headquartered buyout group had acquired a 26% stake in SBI Cards from the GE Group in 2017 for Rs 2,000 crore, valuing the company at Rs 7,200 crore. GE Capital exited SBI Cards as part of its global strategy announced in 2015 to exit the financial services sector.

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