US private equity fund CA Rover Holdings, an affiliate of Carlyle Asia Partners, is looking to sell a 5.1 per cent stake in SBI Cards and Payment Services worth $682 million or Rs 5,000 crore through a block deal on Friday, a term sheet seen by ET showed.
SBI Cards shares plunged as much as 6.27 per cent to Rs 985 in morning deals. At 10:11 am, the stock traded down 5.38 per cent at Rs 994.30 apiece on BSE, sharply underperforming the S&P BSE Sensex index, which was down 0.47 per cent at 52,074.95.
The per share price band decided by the seller is Rs 1,002-1,041.30, which is at a 4.7 per cent discount to Thursday’s closing price of Rs 1,051.70 on NSE.
As of March 31 this year, CA Rover Holdings held a 11.61 per cent stake in SBI Cards and Payment Services. In March, Carlyle had sold a stake of a little over 4 per cent in SBI Cards for about Rs 3,800 crore through block deals to reduce its stake to 11.61 per cent from 15.86 per cent.
The SBI Cards stock has gained over 70 per cent in the last one year. It has risen 18 per cent so far in 2021.
The company’s shares were listed at a steep discount over the issue price as the Covid-19 pandemic spooked the markets in March 2020. In March last year, SBI Cards, India’s second-largest credit card firm after HDFC, had launched its maiden initial public offer (IPO) in which Carlyle sold a 10 per cent stake for Rs 7,000 crore, making a gain of 8.5 times in three years.
