Bank Privatisation

The Central Government and Life Insurance Corporation of India (LIC) will jointly sell 60.72 per cent stake in IDBI Bank. The way has been cleared for the privatization of IDBI Bank.

This information was given on Friday. The Department of Investment and Public Asset Management (DIPAM) will invite Expression of Interest (EOI) from prospective bidders.

The Center will sell 30.48 per cent stake and Life Insurance Corporation of India (LIC) will sell 30.24 per cent stake in IDBI Bank.

“Management control will be transferred with strategic disinvestment of stake of GOI and LIC in IDBI Bank,” Deepam’s secretary tweeted. Bids will be invited for this.”

Life Insurance Corporation of India currently holds 49.24 percent stake in IDBI Bank with 529.41 crore shares while the central government holds 45.48 percent stake with 488.99 crore shares.

Last date for submission of EOI for IDBI Bank is 16th December and all EOIs will be valid for 180 days and can be extended for another 180 days.

Shares of IDBI Bank closed at Rs 42.70, up 0.71 per cent from the previous close on the BSE Sensex. At the current market price, the bank’s 60.72 percent stake would be worth over Rs 27,800 crore.
“The successful bidder will have to make an open offer to the public shareholders of IDBI Bank,” Deepam said, adding that the Cabinet.

Committee on Economic Affairs had given in-principle approval for strategic disinvestment and transfer of management control in IDBI Bank in May last year.