SBI Cards’ stock falls steeply after 2.7 crore shares of the company were sold in a block deal

• Shares of the SBI credit card company slipped nearly 5% after a series of block deals took place.
• As per reports, private equity firm Carlyle Group was to sell its entire stake in the company for ₹2,558 crore via block trade.
• In the last one year, SBI Cards have not performed well and fell 10%.

Shares of SBI Cards and Payment Services, which is a credit card company of SBI, slipped nearly 5% on Tuesday as someone sold a large number of shares.

The stock fell steeply after a series of block deals were reportedly recorded with nearly 29.4 million shares of the company changing hands in two bunched trades. In a block deal, the names of the buyers and sellers are not ascertained immediately.

A block deal is defined as a single trade in which shares greater than 5 crore in number or more than ₹10 crores in value are traded.

As per media reports, private equity firm Carlyle Group was to sell its entire stake in the company for ₹2,558 crore via block trade. As of December 2021, the firm had held 29.20 million shares or 3.09% stake in SBI Cards.

In 2017, the private equity firm had bought a 26% stake in the card company from GE Capital Corp at ₹2,000 crore.

So far in 2022 or even in the last one year, SBI Cards have not performed well and fell nearly 9% and 10% during the period respectively.

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