MUMBAI: CA Rover Holdings, an arm of global PE giant Carlyle, is selling about 4% stake in SBI Cards & Payment Services for up to Rs 3,900 crore, translating into a little over $500 million, through block deals on Wednesday.
The Carlyle arm has mandated Bank of America Securities to sell about 3.8 crore shares at a price band of Rs 982-1,022 per share, the deal’s term sheet showed.
On Tuesday, SBI Cards’s stock on the BSE ended at Rs 1,022. At the lower end of the price band, the shares could be sold at a 3.9% discount to the scrip’s closing price.
Carlyle is the largest non-promoting shareholder in SBI Cards, which was holding nearly 16% in the company as of December 2020, its disclosures on the BSE showed. The deal is set to be executed through the accelerated book-building process.
Under this process, the broker managing the deal, after the close of the day’s trading, sends out the term sheet to large institutions to express their interest to buy shares from the block. Once the book is built, the shares change hands on the bourses on the next day.