Shares of SBI Cards and Payment Services rose over 3 per cent in opening deals on Thursday after CA Rover Holdings divested stake in the company. US private equity fund CA Rover Holdings, an arm of Carlyle Asia Partners, sold 4.25 per cent stake in SBI Cards and Payment Services Ltd for Rs 3,943 crore through an open market transaction.
Snapping previous session losses, SBI Cards share price opened higher at Rs 984.70, against previous close price of Rs 976.75 on the Bombay Stock Exchange. The stock of the credit card company surged as much as 3.03 per cent to Rs 1,006.35 in first hour of day's trade. The market cap of the company rose to Rs 93,779.79 crore. The stock hit 52-week high of Rs 1,149 on February 24, 2021, while it touched 52-week low of Rs 495.25 on May 22, 2020.
In a similar fashion, SBI Cards shares were trading 1.96 per cent higher at Rs 997.50 on the National Stock Exchange. The stock touched a high of Rs 1,008 against previous close of Rs 978.30.
As per the exchange data, CA Rover Holdings divested four crore shares of SBI Cards at an average price of Rs 985.98 apiece. This translates to a deal value of Rs 3,943.92 crore.
CA Rover Holdings is a subsidiary of Carlyle Group, which owned a 15.86 per cent stake in the company at the end of December quarter of 2020. As per the company's shareholding pattern, CA Rover Holdings held 15.86 per cent stake in SBI Cards as a public shareholder at the end of December 2020, while State Bank of India owned 69.39 per cent shares. In March 2020, SBI Cards came out with its Rs 9,000 crore initial public offer. SBI Cards is the second-largest credit card issuer in India with an 18 per cent market share.
Earlier this month, SBI Cards and Payment Services had received its board's nod to raise up to Rs 2,000 crore by issuing bonds in one or more tranches over a period of time.