In largest block deal of 2021 by Carlyle group to sell 5% of SBI Cards for Rs5000

The Carlyle Group had brought 26 per cent in the then unlisted SBI Cards from the GE Capital. It sold 10 per cent during the company’s public offering of the payment services in the March 2020. The March 2021 block deal was the second exit for the PE major from SBI subsidiaries.

CA rover Holding, a part of the private equity major Carlyle group is selling up to 5.1 per cent in SBI Cards and Payment Services for Rs 5,000 crore through the block deals. This makes the largest such deal in the year 2021.

The Carlyle arm has instructed Morgan Stanley and Goldman Sachs for the execution of the deal on Friday.

The CA Rover Holding, according to the term sheet, is selling about 4.8 crore shares at a price band of Rs 1,002 to Rs 1,041.3 per share, translating into the discounts between 4.7 per cent and 1 per cent to the closing price of SBI Cards at Rs 1,051 on the BSE on Thursday.

This was the second block deal in SBI Cards in the year 2021. In March, the same part of Carlyle, the largest non promoting shareholder in SBI Cards with an 11.6 per cent holdings as of the same month and sold 3.9 per cent for about Rs 1,000 crore.

The Carlyle group had brought 26 per cent in the then unlisted SBI Cards from the GE Capital. It sold 10 per cent during the company’s public offering of the payment services in the March 2020. The March 2021 block deal was the second exit for the PE major from SBI subsidiaries.

The latest Cards deal of SBI has been set to be executed through the accelerated book building process. Under which, the broker managing the deal would send out the term sheet to large institutions to express their interest to buy shares from the block to build the deal, after the close of the days trade. After the book is built, the shares changed hands the next day on the bourses in the large blocks.

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