IDBI Bank shoots up ~9% as LIC, Govt plan to pare atleast 51% stake

According to reports, the government and life insurer LIC, who hold together 94.71% stake of IDBI Bank, are considering to dispose off at least 51% stake of the institution.

Following this development, IDBI Bank’s counter shot up nearly 9%.

India will publicly evaluate interest in IDBI Bank as soon as September, with the government likely keeping some IDBI Bank shares following the sale.

According to sources, the centre has approached global buyout firms and financial institutions such as the Carlyle Group, TPG Capital, and Prem Watsa-controlled Fairfax Holdings to evaluate investor interest in buying controlling holdings in the bailed-out lender owned directly by the government and LIC.

As of June 30, the government controlled 45.48% of the bank, while the LIC owned the remaining 49.24%.

At around 12.23 PM, IDBI Bank was trading 8.48% higher at Rs43.50, against the previous close of Rs40.10 on NSE. It touched an intraday high of Rs44.25.

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