New Delhi: IDBI Bank’s privatization process is on and the quantum of stake sale will be decided after the roadshow is complete, Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey said on Friday.
The preparation for privatisation of IDBI Bank is going on, he said during a media interaction at the LIC IPO briefing.
“The quantum of exit will be known, post roadshow, and then the structure of Eol will be finalized. One thing is very sure that management control will be passed on. Currently, it is with LIC. But, management control at what level of equity will have to be decided when we have decided the structure of Eol,” he said.
The government may decide to sell its entire stake in one go or in tranches, depending on the investors’ response. The government holds a 45.48 percent stake in the bank, while LIC holds a 49.24 percent stake.
The Cabinet Committee on Economic Affairs had given in-principle approval for strategic disinvestment and transfer of management control in IDBI Bank in May last year. Necessary amendments to the IDBI Bank Act have already been made through the Finance Act 2021, and transaction advisors have been appointed. – PTI