The government and the LIC jointly own more than 94 per cent stake of IDBI Bank.
Digital Desk: The government is organizing roadshows for the privatization of IDBI Bank and will issue an Expression of Interest (EoI) after evaluating investor interest, said Minister of State for Finance Bhagwat Karad on Monday. In May of last year, the Cabinet Committee on Economic Affairs gave in-principle approval to the diplomatic disinvestment and transfer of management control in IDBI Bank. The government and the LIC jointly own more than 94 per cent stake of IDBI Bank. However, the precise amount of share dilution has yet to be assessed. In a written response to the Lok Sabha, Karad stated that the strategic buyer is expected to incorporate funds, bring new technology, and best management techniques to IDBI Bank, as well as it will promote the business without relying on LIC or the government for capital. LIC currently controls the bank with a 49.24 per cent stake, while the government owns 45.48 per cent. On the other hand, the non-promoter shareholding is 5.29 per cent. "Roadshows are currently being held to analyze investor interest before launching the Expression of Interest (EoI)," Karad explained. The minister went on to say that when deciding on the terms and conditions of the strategic sale, valid concerns of existing employees and other stakeholders are appropriately addressed through suitable regulations in the share purchase agreement. Also Read: YES Bank founder Rana Kapoor gets bail in fraud case
