SEBI had given its approval for reclassification of the government’s shareholding in the bank as ‘public’ after its stake sale.
The Union Government said on January 7 that it has received multiple Expressions of Interest (EOI) for the strategic disinvestment of the stake held by it and Life Insurance Corporation of India (LIC) in IDBI Bank.
The transaction is expected to now move to the second stage, according to a tweet from the according to Secretary, Department of Investment and Public Asset Management (DIPAM), Ministry of Finance.
Multiple Expressions of Interest received for the Strategic Disinvestment of Govt and LIC Stake in IDBI Bank. The transaction will now move to the second stage. pic.twitter.com/dloieEQC9i— Secretary, DIPAM (@SecyDIPAM) January 7, 2023
The government and state-run LIC will sell 60.72 percent stake in IDBI Bank as part of the disinvestment, and after the stake sale, government’s shareholding will be reduced to 15 percent.
Two days ago, Moneycontrol reported that the Securities and Exchange Board of India (SEBI) permitted government shareholding in IDBI Bank to be reclassified as public after stake sale.
The government’s decision to permit foreign funds and investment entities registered outside of India to control more than 51 percent of IDBI Bank has further made the terms and conditions of the transaction more attractive.
In order to reach its divestment goal of Rs 65,000 crore in FY23 (April–March), the Centre has so far raised roughly Rs 31,100 crore.