In a boost for the Centre's ambitious disinvestment drive, the Department of Investment and Public Asset Management (DIPAM) confirmed yesterday (9 July) that the Government and the Life Insurance Corporation of India (LIC) both intend to sell their entire stakes in IDBI Bank along with the transfer of management control, reports The Economic Times.
DIPAM, though added that the exact stake to be sold would be determined as the Government goes through the transaction and ascertains investors' interest and market appetite, et cetera.
The Government presently commands a 45.48 per cent shareholding in IDBI Bank. Meanwhile, LIC controls a larger 49.24 per cent shareholding in the bank. Non-promoters hold the remaining 5.29 per cent of shares.
It should be noted that DIPAM has barred public sector banks from participating as bidders to acquire IDBI Bank in the transaction process.
The CCEA had given in-principle approval for the strategic divestment of IDBI Bank in May this year.