InvestorQ : Is it true that the government and LIC are planning to fully exit IDBI Bank?
Riya Dwivedi made post

Is it true that the government and LIC are planning to fully exit IDBI Bank?

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shrinidhi Rajan answered.
5 months ago
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As of now the government has approved the sale of its entire stake and that of LIC in IDBI Bank. The Cabinet Committee of Economic Affairs or CCEA has given the go-ahead to the government and the LIC to offload 100% with transfer of management. Currently, IDBI Bank is 45.5% owned by the government of India and 49.24% owned by LIC. The balance is held by the public as non-promoter shareholding.

DIPAM has clarified that there will be a common transaction advisor for LIC and the Indian government since LIC's stake will be sold simultaneously with the government stake in IDBI Bank. Earlier, the government had indicated that it plans to offload at least 26% stake in IDBI Bank. Interested bands, financial institutions and consulting firms are required to submit the bids by 13 July and it remains to be seen if this date will be extended.

It may be recollected that LIC had acquired a controlling stake in IDBI Bank in January 2019. Both the LIC and the Indian government will simultaneously divest their stake and also relinquish management control. This will go some way in the government getting closer to its Rs.175,000 crore disinvestment target for FY22.

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