Shares of the SBI Cards and Payments Services fell as much as 6.27 per cent to Rs 985 before paring some losses. At 2:15 pm, SBI Cards and Payment Services was trading at 1,005.20 per share, down 4.44 per cent. Find out why shares of the listed credit card issuer fell.
The shares of the SBI Cards and Payment Services fell as much as 6.27 per cent to Rs 985 before paring some losses. At 2:15 pm, SBI Cards and Payment Services was trading at 1,005.20 per share, down 4.44 per cent.
WHY SBI CARDS SHARES FELL?
Shares of the listed credit card issuer fell after a report indicated that CA Rover Holdings, a US-based private equity fund and an affiliate PE major Carlyle Group, is planning to offload its stake in SBI Cards and Payment Services.
CA Rover Holdings is planning to offload over 5 per cent of its stake, valued at Rs 5,000 crore or $682 million, in SBI Cards and Payment Services through a block deal, reported The Economic Times.
The Carlyle affiliate has reportedly mandated Goldman Sachs and Morgan Stanley to execute the deal.
As of March 31, 2021, CA Rover Holdings held over an 11.6 per cent stake in SBI Cards and Payments Services. Earlier, it held a 15.86 per cent stake but sold a little over 4 per cent of its total stake in March for approximately Rs 3,800 crore through block deals in March.
Carlyle Group had earlier acquired a total 26 per cent stake in SBI Cards and Payments Services from the GE Group in 2017 for Rs 2,000 crore, valuing the company at Rs 7,200 crore.
It may be noted that the SBI Card and Payments stock has gained over 70 per cent in the past year and it has surged 18 per cent in 2021.
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