IDBI LIC Deal

The finance ministry on Thursday extended the deadline for potential bidders to submit queries on IDBI Bank privatisation by 13 days till November 10. The ministry on October 7 had floated the Preliminary Information Memorandum (PIM) inviting bids for selling about 61 per cent stake in IDBI Bank. The deadline for raising queries and submission of bids by interested bidder was October 28 and December 16, respectively. The Department of Investment and Public Asset Management (DIPAM) on Thursday issued a corrigendum to the PIM and extended the deadline for submission of queries till November 10. The government is expecting to get the financial bids for IDBI Bank by March and complete the process of privatisation in the first half of next fiscal beginning April 2023. After the stake sale, the government's and LIC's stake jointly will come down to 34 per cent, from currently 94.72 per cent. LIC and the government currently holds 49.24 per cent and 45.48 per cent stake respectively in

The government and state-owned insurer LIC, who will continue to hold significant shareholding in IDBI Bank post its privatisation, will not veto any proposals of the new owner as part of their plan to give the incoming promoters a free hand, a senior official said. The government earlier this month invited bids for the sale of 60.72 per cent stake in IDBI Bank, which is 45.48 per cent owned by the government and 49.24 per cent by the Life Insurance Corporation of India (LIC). At Friday's closing price of Rs 44.30, IDBI Bank is valued at Rs 47,633 crore but the government is looking for at least 30 per cent markup in the sale. At the current price, sale of 61 per cent stake would fetch about Rs 29,000 crore to the government. The official said post-privatisation, the government and LIC shareholding will come down to 34 per cent but they do not intend to move in tandem to block any special resolution proposed by the new promoter. This is with a view to assuaging the concerns of ...

Authorities plan to sell at least some of the government and LIC's stakes in IDBI Bank and cede management control

The government, which continues to be a promoter, holds around a 46.5 per cent stake in IDBI Bank and is classified as a private bank following LIC's acquisition.

Currently, Moody's assumes a 'very high' level of support from the government for the bank

Insurance major will hold over 10% in three AMCs; LIC may be required to merge IDBI Mutual Fund with its own fund house, according to experts