InvestorQ : Will the government and LIC continue to control IDBI Bank after the privatization?
Deepa Salunkhe made post

Will the government and LIC continue to control IDBI Bank after the privatization?

Answer
image
Arya Nanda answered.
1 month ago
Follow

Post the sale of stake in IDBI Bank, the government and LIC will still jointly hold about 34% stake in IDBI Bank. This is not a controlling stake but large enough to block special reservations or veto power as it is called. However, the government has been quick to clarify that it would give full freedom to the new private owner of the bank and will not exercise its veto power. Government has clarified that the stake is being retained only to give comfort to the creditors and stake holders that the government is still an interested party.

As part of the stake sale, the government and LIC will jointly sell 60.72% stake in IDBI Bank, which currently has a total valuation of Rs47,633 crore. The stake sale could, therefore, fetch around Rs29,000 crore.

3 Views