Private equity firm Carlyle Group has sold its entire remaining stake in SBI Cards & Payments Services Ltd (SBI Card) on Tuesday, marking its exit from the country’s largest pure-play credit card issuer.
Carlyle Group, through CA Rover Holdings, is understood to have realised at least ₹2,484 crore through sale of 2.92 crore shares (or 3 per cent) at the NSE and BSE at an average price of ₹851.
As many as 2.62 crore shares got sold through the bulk-deal window at the NSE.
When contacted, SBI Cards management declined comment on Carlyle Group’s exit.
Exit at regular intervals
It maybe recalled that SBI Cards had commenced operations in 1998 as a joint venture with GE Capital Corp. In 2017, Carlyle acquired 26 per cent stake in SBI Cards from GE group for ₹2,000 crore. As part of the deal with GE, SBI had taken its holding in combined SBI Cards ( it was two entities coming together after GE’s exit) to 74 per cent.
Carlyle Group had also made a partial exit in the SBI Cards IPO that hit the market in March 2020. Since then the PE firm has consistently been reducing its stake.
Shares of SBI Cards closed at ₹839.90, down 4.14 per cent over the previous day’s close of ₹ 876.15 on the NSE.