Home / Business and Economy / IDBI Bank Stake Sale: Govt & LIC Offload 60.72%
IDBI Bank Stake Sale: Govt & LIC Offload 60.72%
14 Jul
Summary
- Government and LIC will jointly sell 60.72% of IDBI Bank.
- Management control will transfer to the winning bidder.
- Core Group of Secretaries met twice to review the stake sale.
The Indian government has officially greenlit the strategic sale of IDBI Bank, marking a significant step in its disinvestment agenda. This approval allows for the joint sale of a 60.72% stake by the Centre and the Life Insurance Corporation of India (LIC).
The transaction structure explicitly includes the transfer of management control to the entity that successfully acquires the stake. This strategic move aligns with the government's broader plan to divest its holdings in key financial institutions.
Sources indicate that recent high-level discussions have been instrumental in moving the process forward. Specifically, the Core Group of Secretaries on Disinvestment convened multiple times on July 13 to meticulously review the proposed transaction. Officials from the Department of Investment and Public Asset Management and the Department of Financial Services were also involved in these crucial meetings.
This stake sale represents a prominent disinvestment initiative by the government. The process officially began in 2022 when expressions of interest were invited. The government proposed selling its 30.48% share, while LIC offered its 30.24% holding, totaling the 60.72% equity stake.
