MUMBAI: CA Rover Holding, an arm of the private equity major Carlyle Group, is selling up to 5.1% in SBI Cards & Payment Services for about Rs 5,000 crore (or around $682 million) through block deals. This makes it the largest such deal in 2021.
The Carlyle arm has mandated Morgan Stanley and Goldman Sachs to execute the deal on Friday, sources said. According to the term sheet, CA Rover Holding is selling about 4.8 crore shares in a price band of Rs 1,002-1,041.3 per share, translating into discounts of between 4.7% and 1% to the Thursday closing price of SBI Cards at Rs 1,051 on the BSE.
This is the second block deal in SBI Cards in 2021. In March the same Carlyle arm, the largest non-promoting shareholder in SBI Cards with an 11.6% holding as of that month, had sold 3.9% for about Rs 1,000 crore. Earlier, the Carlyle Group had bought 26% in the then unlisted SBI Cards from GE Capital. After that, it had sold 10% during the payment services company’s initial public offering in March 2020. The March 2021 block deal was the second partial exit for the PE major from the SBI subsidiary.
The latest SBI Cards deal is set to be executed through the accelerated book building process. Under this, 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 to build the book for the deal. Once the book is built, the shares change hands the next day on the bourses in large blocks.
The Carlyle arm has mandated Morgan Stanley and Goldman Sachs to execute the deal on Friday, sources said. According to the term sheet, CA Rover Holding is selling about 4.8 crore shares in a price band of Rs 1,002-1,041.3 per share, translating into discounts of between 4.7% and 1% to the Thursday closing price of SBI Cards at Rs 1,051 on the BSE.
This is the second block deal in SBI Cards in 2021. In March the same Carlyle arm, the largest non-promoting shareholder in SBI Cards with an 11.6% holding as of that month, had sold 3.9% for about Rs 1,000 crore. Earlier, the Carlyle Group had bought 26% in the then unlisted SBI Cards from GE Capital. After that, it had sold 10% during the payment services company’s initial public offering in March 2020. The March 2021 block deal was the second partial exit for the PE major from the SBI subsidiary.
The latest SBI Cards deal is set to be executed through the accelerated book building process. Under this, 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 to build the book for the deal. Once the book is built, the shares change hands the next day on the bourses in large blocks.
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