India’s SBI Cards may produce country’s biggest PE exit with IPO

FILE PHOTO: The logo of the Carlyle Group is displayed at the company's office in Tokyo, Japan October 17, 2018. REUTERS/Issei Kato

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.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.