The Centre and insurance giant LIC together own 94.71 per cent stake in the bank. The government owns 45.48 per cent of IDBI Bank, and is planning to divest a 30.48 per cent stake in the bank. Whereas, LIC plans to see a 30.24 per cent of its stake from its holding of 49.24 per cent in the bank.
The government may take a two-stage approach to privatize IDBI Bank, examining the eligibility of potential bidders in the first stage, followed by a second stage where transaction advisers will take charge of the sale.
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Cabinet approves strategic disinvestment of IDBI Bank
The Cabinet Committee on Economic Affairs (CCEA) has given its in-principle approval for strategic disinvestment along with transfer of management control in IDBI Bank Ltd.
The extent of respective shareholding to be divested by the GoI and LIC, shall be decided at the time of structuring of transaction in consultation with the RBI, said an official statement.
The Government of India (GoI) and the LIC together own more than 94 per cent of equity of IDBI Bank, with the Centre holding 45.4 per cent and the LIC owning 49.24 per cent stake. LIC is currently the promoter of IDBI Bank with management control and the Centre is the co-promoter.
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