INSUBCONTINENT EXCLUSIVE:
Government holding roadshows for IDBI Bank privatisation to assess investors' interestNew Delhi: The government is holding roadshows for
IDBI Bank privatisation and will come out with expression of interest (EoI) after assessing investor interest, Minister of State for Finance
Bhagwat Karad said on Monday.The Cabinet Committee on Economic Affairs had in May last year given in-principle approval for strategic
disinvestment and transfer of management control in IDBI Bank
The government and LIC together own more than 94 per cent equity of IDBI Bank
However, the exact quantum of stake dilution is yet to be decided.In a written reply to the Lok Sabha, Karad said it is expected that the
strategic buyer will infuse funds, bring new technology and best management practices in IDBI Bank and shall generate more business without
dependence on LIC and government for capital.LIC, currently having management control, has a 49.24 per cent stake, while the government
holds 45.48 per cent in the bank
Non-promoter shareholding stands at 5.29 per cent."..
roadshows are currently being held to assess the investors' interest before floating the Expression of Interest (EoI)," Karad said.The
minister further said that while deciding the terms and conditions of the strategic sale, legitimate concerns of the existing employees and
other stakeholders are suitably addressed through appropriate provisions made in the share purchase agreement.
