Strategic Disinvestment and transfer of Management Control in IDBI Bank

Department of Investment and Public Asset Management (DIPAM), Ministry of Finance, Govt. of India (GoI) vide their email dated May 05, 2021 has announced that Cabinet Committee on Economic Affairs has given its in-principle approval for strategic disinvestment along with transfer of management control in IDBI Bank Ltd. LIC's Board has also passed a resolution to the effect that LIC may reduce its shareholding in IDBI Bank Ltd. through divesting its stake along with strategic stake sale envisaged by the Govt. with an intent to relinquish management control and by taking into consideration price, market outlook, statutory stipulation and interest of policy holders. This decision of LIC's Board is also consistent with the regulatory mandate to it to reduce its stake in the Bank.

The extent of respective shareholding to be divested by GoI and LIC shall be decided at the time of structuring of transaction in consultation with RBI.

GoI and LIC together own 94.72% of equity of IDBI Bank (GoI 45.48%, LIC 49.24%). LIC is currently the promoter of IDBI Bank with Management Control and GoI is the co-promoter.

Shares of IDBI BANK LTD. was last trading in BSE at Rs.37.95 as compared to the previous close of Rs. 36.35. The total number of shares traded during the day was 5420879 in over 8951 trades.

The stock hit an intraday high of Rs. 39.5 and intraday low of 36.75. The net turnover during the day was Rs. 208928787.

Source : Equity Bulls

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