PE major Carlyle's arm eyes Rs 5,000 crore from 5.1% stake sale of SBI Cards

CA Rover Holding, a US-based private equity fund and an affiliate of PE (Private Equity) major Carlyle Group, is planning to offload a 5.1% stake in SBI Cards and Payment Services for around Rs 5,000 crore ($682 million).

The stake sale will be done through a block deal, The Economic Times reported.

A total of 48 million shares of the sole listed credit card issuer in India will be on offer and will range between Rs 1,002 to Rs 1,041.30 per share - which is up to a 4.7% discount to the last closing price of Rs 1,051.7 on the National Stock Exchange on Thursday.

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At the end of the March quarter, CA Rover Holdings held an 11.61% stake in SBI Cards and Payment Services.

The Carlyle arm has reportedly mandated Goldman Sachs and Morgan Stanley to execute the deal on Friday.

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This is the second block deal in SBI Cards and Payment Services in 2021. In March, Carlyle had offloaded a little over 4% stake in the credit card company for around Rs 3,800 crore via block deals to pare its stake to 11.61% from 15.86%.

Carlyle Group had acquired a 26% stake in SBI Cards and Payment Services from the GE Group in 2017 for Rs 2,000 crore, valuing the company at Rs 7,200 crore.