CNBC-TV18 reported on September 6 that the central government and the Life Insurance Corporation (LIC) of India are set to put up for sale a 60 percent share in IDBI Bank. By October, the Expression of Interest (EoI) period for the divestment process will open.
The government and LIC may sell up to a 65 percent interest in IDBI Bank, according to a previous report. As of June 30, the two owned over 94 percent of IDBI Bank, with the Centre holding a 45.48 percent interest and LIC holding a 49.24 percent stake respectively.
At each stage of the divestment process, the government will request due diligence from the Reserve Bank of India (RBI).
Subject to the submission of a plan to reduce the share in 15 years, promoter holdings are not limited. The cap on voting rights of 26 percent does not change for the divestment, though.
The IDBI stock was trading at Rs 43.55 a share at the time of writing, up roughly 0.46 percent.
In 2021, the Indian government declared it would stop operating IDBI Bank. The liquidation or sale of the government's property is referred to as the disinvestment strategy.
Governments can raise money for public needs by using the strategy of disinvestment to lighten their budgetary obligations. Asset privatisation is another option.
The process of selling a stake in IDBI Bank has been delayed significantly and has had many ups and downs. Because of its efforts to contact potential buyers as well as bids, the government had originally intended to invite the EoI in May. However, this procedure was delayed.