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Stock News: IDBI Bank Zooms 7% On Cabinet Nod For Strategic Stake Sale

IDBI Bank share rises 14% on Cabinet s nod for disinvestment

idbi bank: Govt okays IDBI Bank strategic divestment

The government has approved the strategic disinvestment and transfer of management control in IDBI Bank Ltd. The Cabinet Committee on Economic Affairs, which met under the chairmanship of Prime Minister Narendra Modi, gave its in-principle go ahead, according to an official statement on Wednesday. The government currently holds a 45.48% stake in the lender, while state-run Life Insurance Corp. of India is the promoter with a 49.24% stake. “The extent of respective shareholding to be divested by GoI and LIC shall be decided at the time of structuring of transaction in consultation with RBI,” the government said in the statement. The strategic buyer will infuse funds, new technology and best management practices for optimal development of business potential and growth of the bank and generate more business without any dependence on LIC and government assistance or funds, it said.

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