Including that of the Life Insurance Corporation of India (LIC), in IDBI, the government has approved the sale of its entire stake, as per a report released by Moneycontrol.
Along with a transfer of management, to offload 100% of their entire stakes in IDBI bank, a go-ahead to the government and the LIC has been given by the Cabinet Committee of Economic Affairs (CCEA), as said by the Department of Investment and Public Asset Management (DIPAM) on 9th July.
With the government’s shareholding at 45.5% along with the non-promoter shareholding at 5.29% and LIC’s shareholding at 49.24%, the Reserve Bank of India has classified IDBI bank as a private sector bank, at present.
Based on several factors, the exact quantum of stake to be sold shall be decided as mentioned by the Department of Investment and Public Asset Management (DIPAM).
There shall be only one transaction advisor since LIC’s stake shall be sold alongside the government’s shareholding in the mentioned transaction, as further clarified by the department.
The bids by financial institutions, interested investment banks along with consulting firms, and law firms should be submitted by 13th July as said by the Department of Investment and Public Asset Management in the RFPs issued.
The board quantum of primary infusion expected in the bank along with the timeframe for such an infusion has not yet been decided, as mentioned by DIPAM while responding to the queries raised by the bidders on the RFP.
