India's PSU banks initiates move to offload stake in CARE Ratings -source
Large Public Sector Undertaking (PSU) banks in India have initiated a move to offload their shares in credit ratings firm CARE Ratings, according to sources familiar with the matter. These PSU banks are major stakeholders in the said agency, wrote The Economic Times.
IDBI Bank, Federal Bank BSE, Canara Bank, and SBI have put their CARE shareholding on the block. These PSU banks own a total stake of around 45% in the agency. Offers have been sent to big private equity companies such as KKR, TPG Capital, and Carlyle, the report detailed.
According to one source, the CARE shareholders' one-year lock-in period ended on December 20, 2013. The PSU banks want to sell their shares in order to raise capital, the report explained.
A source said: "Talks are at an initial stage and the private equity firms may want a controlling stake in CARE Ratings."
IDBI Bank BSE is the biggest stakeholder in the rating agency with 17%. Canara owns a 15% holding. SBI BSE has a 6.31% stake in the company. Federal Bank owns 3.90% of CARE Ratings, The Economic Times reported.