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News Topical, Digital Desk : Information has come to light about a major change in the ownership structure of IDBI Bank. Market regulator SEBI has approved classifying LIC as the public shareholder of the bank. The bank informed the stock exchange about this. This step is an important step in the transformation of the bank after the strategic disinvestment of the government. Let us tell you that till June 30, LIC has a 39% stake in IDBI Bank.
As per SEBI's instructions, LIC's voting rights in IDBI Bank will be limited to 10% of the total effective voting rights. LIC will not exercise any control over the affairs of the bank nor will it get any special rights. Apart from this, LIC will not have any representation in the bank's board of directors.
An important step towards the privatization of the bank , LIC will clarify its remaining stake in the offer letter to the shareholders about the open offer of the new buyer. LIC will have to reduce its stake to 15% within two years from the last date of strategic disinvestment. After SEBI's approval, IDBI Bank will now approach the stock exchange for formal classification. This is being considered an important step towards the privatization of the bank.
What has happened so far in the direction of disinvestment? On August 21, media reports quoted Arunish Chawla, Secretary, Department of Investment and Public Asset Management (DIPAM), as saying that the Expression of Interest (EOI) process for the sale of IDBI Bank's stake has been completed and due diligence is currently underway. The government hopes to invite bids for stake sale by the third quarter of this financial year.
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