Modi government, LIC to sell majority stake in IDBI Bank
A total of 60.72 per cent will be divested by both, including 30.48 per cent of the government and 30.24 per cent of the LIC. Together, the two hold about 94 per cent stake in IDBI Bank. Out of this, the government owns a 45.48 per cent stake and LIC 49.24 per cent.
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FollowA year after it expressed its intent to exit from IDBI Bank, the government on Friday commenced its strategic disinvestment process with the transfer of management control. On October 7, the government invited the Expression of Interest for strategic disinvestment of specified government and Life Insurance Corporation stakes in the bank from prospective bidders.
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A total of 60.72 per cent will be divested by both, including 30.48 per cent of the government and 30.24 per cent of the LIC. Together, the two hold about 94 per cent stake in IDBI Bank. Out of this, the government owns a 45.48 per cent stake and LIC 49.24 per cent.Â
The public shareholders hold just 5.28 per cent of the bank's shares. It is pertinent to mention here that disinvestment means the liquidation or sale of the assets owned by the government.
As per the Preliminary Information Memorandum, the last date for submission of an Expression of Interest (EoI) for IDBI Bank is December 16. All the EoIs shall be valid for 180 days and can be further extended by another 180 days.
In a tweet, DIPAM Secretary said: "Expression of Interest is invited for Strategic Disinvestment of specified GoI and LIC stakes in IDBI Bank along with transfer of management control."
"The successful bidder is required to make an open offer to public shareholders of IDBI Bank," DIPAM noted.
Besides, large industrial or corporate houses and individuals have not been permitted to participate in the bidding process for the transaction, either on their own or as a part of a consortium.
Earlier, the Cabinet Committee on Economic Affairs had given in-principle approval for strategic disinvestment and transfer of management control in IDBI Bank in May 2021.
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