Carlyle sells 10% stake in India's SBI Card

The Carlyle Group has sold a 10 per cent stake in SBI Cards & Payment Services Ltd (SBI Card), the second-largest credit card issuer in India, via the largest Indian large-cap private sector initial public offering (IPO) in a decade.

Posted Thursday, March 19th 2020
Carlyle sells 10% stake in India's SBI Card

Sunil Kaul

Following the IPO, Carlyle continues to hold a 16 per cent stake in SBI Card.

Carlyle acquired a 26 per cent stake in SBI Card from GE Capital in December 2017. Equity for this transaction came from an affiliated entity of Carlyle Asia Partners IV, Carlyle’s fourth Asia buyout fund focusing on buyout and strategic investments across a wide range of sectors in Asia Pacific.

Sunil Kaul (pictured), managing director and head of Southeast Asia of the Carlyle Asia buyout advisory team, said: “Over the last few years, we along with our partner and majority shareholder, SBI, worked to provide an enabling and constructive environment for SBI Card’s management as they focused on the long-term development of the company. Working alongside our partners, we leveraged our global network and operating experience in financial services and technology to help SBI Card further expand its business, build its data analytics and technology capabilities and most importantly, further enhance its customer experience. We take great pride in the achievements of the SBI Card management team, and have every confidence in this leadership team as the business moves to the next stage of evolution and growth as a public company.”

Kaul continued: “India has a significantly underpenetrated credit card market with strong tailwinds from rising incomes, favorable demographics and the ongoing digitalization of the economy. We are confident in the long-term fundamentals of the Indian credit card industry and SBI Card.”

As of 31 December 2019, Carlyle had invested approximately $2.5 billion in India – among its most notable investments have been SBI Life, SBI Card, Delhivery, Metropolis and Tirumala Milk Products.