Government May Sell 51% Of $5 Bn IDBI Bank
As per the current composition, the government of India and the state-backed Life Insurance Corporation of India together own about 94 per cent of IDBI Bank’s shares
The government of India is considering selling at least 51 per cent of state-backed IDBI Bank, Bloomberg News reported citing people aware of the development.
As per the current composition, the government of India and the state-backed Life Insurance Corporation of India together own about 94 per cent of IDBI Bank’s shares.
The report stated that they are in talks about how much of their stakes they plan to sell and both are expected to retain a stake in the bank after the sale.
The report further stated that a panel of ministers will make the final decision on the structure of the deal and both, the government and LIC will formally seek to gauge buyer interest as soon as the end of September.
Authorities plan to sell at least some of the government and LIC’s stakes in IDBI Bank and cede management control. Reserve Bank of India will allow investors to buy a stake larger than 40 per cent, Bloomberg News has reported.
Entities governed by the regulator normally need to seek permission to buy stakes above that threshold while non-regulated firms are capped at purchases of 10 to 15 per cent.
