At 09:22 AM, the stock traded 3 per cent higher at Rs 56.35, as compared to 0.08 per cent decline in the S&P BSE Sensex. The stock hit a 52-week high of Rs 61.05 on December 15, 2022.
The reclassification of government holding as ‘public’ post sales is subject to the condition that the government’s voting rights in the bank will not exceed 15 per cent of the total voting rights after the sale. Also, the government must specify its intention to reclassify its shareholding in the bank as “public holding” in the letter of offer dispatched to the shareholders of the bank in connection with the open offer made by the acquirer.
Further, after disinvestment, the bank must make an application to the stock exchanges for reclassification of the government holding under the public category. And, the new acquirer must ensure compliance with the minimum public shareholding (MPS) requirements within one year of the sale.
At present, the government and state-owned Life Insurance Corporation hold a little over 94 per cent in IDBI Bank and are classified as its co-promoters. While the government holds 45.48 per cent stake, LIC holds around 49.24 per cent, and the remaining 5.28 per cent is public shareholding.
The central government is looking to sell nearly 61 per cent stake in IDBI Bank, and the last day to submit preliminary bids is Saturday. The successful bidder will have to make an open offer for acquiring 5.28 per cent from public shareholders.
The government is selling 30.48 per cent stake in the bank, while LIC will sell 30.24 per cent. After the sale, the government will be left with 15 per cent and LIC will have a little over 19 per cent stake in the bank. CLICK HERE FOR FULL DETAILS
The Department of Investment and Public Asset Management (DIPAM) last month extended the deadline to submit Expressions of Interest (EoI) for the strategic disinvestment of the Bank to January 7 2023 from December 16 2022.
The last date for submitting physical copies of EoI by interested bidders who have done so electronically was extended from December 23 to January 14.
In past three months, the stock price of IDBI Bank has rallied nearly 35 per cent, as compared to 4 per cent rise in the S&P BSE Sensex. In past six months, it has zoomed 85 per cent, as against 14 per cent gain in the benchmark index.
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