Private Equity Giant Carlyle Group’s Latest Windfall: SBI Cards

The Firm is India’s Second Largest Credit Card Issuer in India.

The SBI Cards IPO will be the largest public offering in India this year. On November 27, the company filed its draft prospectus but failed to provide any valuation insight. No matter for one of the biggest winners in this deal – which could raise $1.25 billion: Private equity giant Carlyle Group.

The SBI Cards IPO and Carlyle Group

SBI Cards is the second-largest credit card issuer in India. The firm has about an 18% market share. And the Reuters report indicates that the Carlyle Group is set to make a massive windfall from its IPO.

Carlyle Group owns 26% of the company. It purchased this stake in 2017 from the financial lending division of General Electric. The deal cost 20 billion rupees ($277 million).

Reuters’ sources say that the stake will have increased by seven times this original cost.

Carlyle Group plans to sell a 10% stake in the firm as part of the IPO. The firm would generate about 60 billion rupees from that 10% stake.

India’s largest lender, SBI, owns the remaining 74% of the company. The Securities and Exchange Board of India (SEBI) still needs to approve the offering.

Related: Tiger Global: Pedal to the metal on investing in Indian startups


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