MUMBAI: US private equity fund CA Rover Holdings, an affiliate of Carlyle Asia Partners, is looking to sell a 3.4 per cent stake in SBI Cards and Payment Services worth $443 million or Rs 3,267 crore through the stock exchange platform on Tuesday, according to a term sheet issued by the book runner BofA Securities.
The sale price has been fixed at Rs 1021 to Rs 1072.30 a piece, which is as much as 4.78 per cent lower than Monday’s closing price of Rs 1072.30. As of March 31, 2021, CA Rover Holdings held a 6.50 per cent stake in the company.
While BofA Securities confirmed the transaction, Carlyle Asia Partners did not respond to ET’s query.
This would be Carlyle’s third transaction in 2021. In June, US PE fund sold a 3.98 per cent stake, or 37.4 million shares, in SBI Cards worth Rs 3,750 crore through a block deal at Rs 1,002 apiece. Earlier in March, Carlyle sold a 4 per cent stake in SBI Cards worth $514 million or Rs 3728 crore.
The Washington-headquartered buyout group had acquired a 26 per cent stake in SBI Cards from the GE group for Rs 2,000 crore in 2017, valuing the company at Rs 7,200 crore. Three years later, in March 2020, the company, India’s second-largest credit card firm, launched its maiden initial public offer (IPO), through which Carlyle sold 10 per cent for Rs 7,000 crore and made a gain of 8.5 times in three years.
SBI Card is operated through two joint ventures — SBI Cards & Payment Services and GE Capital Business Process Management Services. Initially, GE Cap owned 40 per cent in SBI Cards & Payment Services while it had the controlling 60 per cent stake in GE Capital Business Processes Management Services. SBI held the residual stakes in both.
In early 2017, SBI hiked its stake in both the ventures to 74 per cent. Later in 2017, GE Capital sold its 26 per cent stake in SBI Cards & Payment Services to Carlyle for Rs 2,000 crore.
GE Capital exited SBI Card as part of its global strategy to exit the financial services sector announced in 2015.
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