On Friday, the shares of SBI Cards and Payment Services drop over 6 percent on the stock market. The SBI cards shares fell as much as 6.27 percent which is equal to nearly Rs 985 before paring some losses.
Reasons For SBI Cards Shares Drop
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.
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As per the report, he is planning to offload over 5 percent of its stake which is valued at Rs 5,000 crore or $682 million, in SBI Cards and Payment Services through a block deal.
As of March 31, 2021, CA Rover Holdings hold more than an 11.6 percent stake in SBI Cards and Payments Services. Earlier, he holds a 15.86 percent stake but sold a little over 4 percent in March for approximately Rs 3,800 crore through block deals in March.
Earlier, Carlyle Group also acquired a total 26 percent stake in SBI Cards and Payments Services valuing Rs 7,200 crore from the GE Group in 2017 for Rs 2,000 crore.
It may also be noted that the State Bank of India Card and Payments stock has gained over 70 per cent in the past year and it has surged 18 per cent in 2021.
