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Govt Keeps 15% Stake in IDBI Bank
14 Oct
Summary
- Government retains 15% equity in IDBI Bank post-restructuring.
- LIC will also hold 19% and withdraw board nominees.
- Government's remaining stake to be sold via open market.
The Indian government has decided to retain a 15% equity stake in IDBI Bank after its strategic restructuring. Life Insurance Corporation of India (LIC) will continue to hold a 19% stake.
In a significant shift, both the government and LIC will withdraw their nominated representatives from IDBI Bank's board. They will subsequently be reclassified as public shareholders.
This move is facilitated by the Cabinet Committee on Economic Affairs, which has authorized an Alternative Mechanism. This mechanism is empowered to manage the sale of the government's remaining stake through open market operations, adhering to minority stake sale procedures.
LIC will independently manage its residual shareholding in IDBI Bank. This management will be conducted in compliance with the corporation's internal procedures and prevailing regulatory requirements, allowing flexibility in its investment strategy.
