The Department of Investment and Public Asset Management said Expression of Interest (EoI) will be invited from potential bidders on October 7.Deepam,
The Center has decided to sell 30.48 per cent stake, meanwhile, Life Insurance Corporation of India (LIC) will sell 30.24 per cent stake in the bank. Presently, LIC holds 49.24% stake while Government of India holds 45.48% stake IDBI Bank.
Expressions of interest are invited for strategic disinvestment of specified Government of India and LIC stake in IDBI Bank with wi… https://t.co/3amqRMfbtX
— Secretary, DIPAM (@SecyDIPAM) 1665139378000
“It has now been decided that in accordance with the strategic disinvestment of IDBI Bank, such number of shares representing (i) the Government of India 30.48% (thirty four eight per cent) and (ii) the Life Insurance Corporation of India (“LIC”) With the transfer of management control in IDBI Bank, IDBI will sell shares representing an aggregate of 30.24% (Thirty Two Four Percent) of 60.72% (Sixty Decimal Seven Two Percent) of the equity share capital of IDBI Bank.” Said a press release.
The Cabinet Committee on Economic Affairs had in May 2021 given in-principle approval for strategic disinvestment and transfer of management control in IDBI Bank.
After the acquisition of an additional 8,27,590,885 equity shares, IDBI Bank became a subsidiary of LIC with effect from January 21, 2019.
On December 19, 2020, IDBI Bank was reclassified as an associate company due to reduction of LIC shareholding to 49.24 per cent following issuance of additional equity shares by the bank under a Qualified Institutional Placement (QIP).
Earlier, LIC Chairman MR Kumar had said that the company plans to retain some stake in IDBI Bank so that it continues to benefit from the bancassurance channel.
“Going forward, we would like to hold some stake in IDBI Bank. Our whole idea of taking a stake in the bank was strategic in nature and it has not taken off at all,” Kumar was quoted as saying by PTI.
The government has set a target of Rs 65,000 crore from disinvestment in 2022-23 (April-March), of which it has already raised Rs 24,544 crore.