IDBI Bank stake sale: Govt holding road shows to assess investors' interest
The government may look to sell around a 26% stake in the IDBI Bank, along with management control to attract investors.
The union government is currently holding roadshows to assess the investors' interest for the stake sale of IDBI Bank, the Parliament was informed on Monday.
IDBI Bank shares closed over 4.43% higher at ₹44.75 apiece on NSE.
In a written reply to Lok Sabha, Minister of State (MoS) for Finance Bhagwat Karad said while deciding the terms and conditions of the strategic sale, legitimate concerns of the existing employees and other stakeholders are suitably addressed through appropriate provisions made in the share purchase agreement.
"... roadshows are currently being held to assess the investors' interest before floating the Expression of Interest (EoI)," Karad said. The government plans to invite expression of interest to sell its stake in IDBI Bank by the next month-end, news agency PTI reported.
The government may look to sell around a 26% stake in the bank, along with management control to attract investors, according to the report. Eventually, the government will look to sell its entire stake.
The Cabinet Committee on Economic Affairs had in May last year given in-principle approval for strategic disinvestment and transfer of management control in IDBI Bank.
The government and LIC together own more than 94% equity of IDBI Bank. However, the exact quantum of stake dilution is yet to be decided.
LIC, currently having management control, has a 49.24% stake, while the government holds 45.48% in the bank. Non-promoter shareholding stands at 5.29%. IPO-bound LIC plans to retain some stake in IDBI Bank so that the insurer continues to reap the benefits of the bancassurance channel.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!