Private equity firm Carlyle has launched a block deal to sell around 4 percent stake in the country’s second largest credit card firm SBI Cards & Payment Services and raise around $513 million, according to a deal term sheet viewed by Moneycontrol.
The offer price range is Rs 981.80/share to Rs 1,022.10/share (the upper end reflecting a 3.94 percent discount to the closing price of Rs 1,022.1 on 16th March), as per the term sheet. BofA Securities is the sole bookrunner to the transaction.
Carlyle held 15.86 percent stake in SBI Cards and Payment Services at the end of trade on 16th March, 2021. SBI Cards and Payment Services hit the markets in March 2020 with a mega $1.6 bn IPO.
In 2017, the private equity firm had acquired a 26 percent stake in SBI Card from the GE Group for Rs 2,000 crores and later clocked huge gains via a partial exit in the SBI Cards IPO.
Moneycontrol could not connect with Carlyle & SBI Cards & Payment Services for an immediate comment.
According to recent press reports, Carlye had emerged as the sole bidder for the sale process of Blackstone controlled IT services firm Mphasis, but the deal had hit a hurdle over valuations. In a recent board meet, SBI Cards had approved raising of funds by way of issuance of Non-Convertible Debentures (NCDs) aggregating to Rs. 2,000 Crores in one or more tranches over a period of time.
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