Private equity (PE) firm Carlyle Group’s partial stake sale in SBI Cards and Payment Services Ltd, the credit card unit of the country’s largest lender, is set to become the largest ever exit of a PE firm through an initial public offering (IPO) in India, two people aware of the matter said, requesting anonymity.
SBI Cards filed draft papers for its IPO on 27 November. The IPO, which is expected to be around ₹9,000-9,600 crore in size, will see both State Bank of India, the parent entity, and Carlyle, which holds 26% in the unit, pare their stakes by 4% and 10%, respectively. SBI holds 74% stake in SBI Cards, while Carlyle owns 26%.
At an expected enterprise valuation of up to ₹65,000 crore, the second person said, Carlyle’s stake sale could be worth ₹6,500 crore—the largest-ever made by a PE firm through a public listing in India.
The previous major IPO exits witnessed in the Indian primary markets include Tata Opportunities Fund’s ₹1,636 crore exit from Varroc Engineering Ltd, Chrys Capital’s ₹1,347 crore exit from Eris Lifesciences Ltd, Actis’s ₹910 crore exit from Endurance Technologies Ltd and International Finance Corp.’s ₹810 crore exit from Bandhan Bank Ltd.
This article was first published on livemint.com.