Shares of SBI Cards were under pressure after Carlyle sold 4 percent stake in the firm via block deals today at an average price of Rs 990 per share. Carlyle now owns 12 percent stake in the firm as against 16 percent earlier.

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Post this stake sale, the free-float in SBI Card increases from 14.50 percent to 18.50 percent which may open the door for the stock to enter into the MSCI Index in the May review.

Brokerage house Prabhudas Lilladher is positive on the stock despite the stake sale.

Shweta Daptardar, Research Analyst at Prabhudas Lilladher said, “We have been covering stock since the time of listing day and we have remained positive pretty from day one. Primarily reasons being one - even during pandemic we have seen SBI Card acquiring new customers from the parent itself which helps in serving incremental delinquencies.”

“Secondly, the scarcity premium associated with the names has always helped maintain this high valuation range. Going forward as India prepares for the higher digital penetration we believe credit card players has a bigger role to play,” she added.

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(Edited by : Pranati Deva)

First Published:Mar 17, 2021 4:34 PM IST