EoIs for IDBI stake sale soon
The government plans to call for expressions of interest (EoI) next week for the strategic sale of shares and transfer of management control in IDBI Bank.
The core group of secretaries on disinvestment is scheduled to meet on October 3 under the chairmanship of the cabinet secretary for the final approval of the EoI, sources said.
The Centre holds 45.5 per cent of IDBI Bank and Life Insurance Corporation of India owns 49.24 per cent.
Though the exact size of the stake dilution is not yet apparent, the government and promoter Life Insurance Corporation (LIC) may offer to offload up to a 60 per cent stake in the lender. The government may sell a 30.48 per cent stake and LIC may offer 30.24 per cent. If this is the case, the government will be left with 15 per cent and LIC with 19 per cent after disinvestment.
More than 16 months have passed since the Cabinet Committee on Economic Affairs granted an in-principle approval for the strategic sale of shares and transfer of management control in IDBI Bank.
Several meetings have been held within the government and between the government and the Reserve Bank of India, the Securities and Exchange Board of India and the Insurance Regulatory and Development Authority of India over various issues related to regulatory matters, including the glide path to reduce promoter stake in the bank post transaction.