After the airline company Air India, now the government is preparing to sell IDBI Bank. In fact, the central government is currently organizing a road show i.e. open offer to sell the stake of IDBI Bank. This information was given in Parliament on Monday.
In a written reply in Lok Sabha, Minister of State (MoS) for Finance Bhagwat Karad said, “Road shows are being organized to assess the interest of investors before issuing Expression of Interest (EoI).”
Government may order EOI by next month
According to the news of PTI, the government is planning to invite expressions of interest for selling its stake in IDBI Bank by the end of next month. Let us inform that IDBI Bank shares closed at Rs 44.75, up 4.43% on NSE.
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Government will consider selling the entire stake
According to the report, the government may consider selling around 26% stake in the bank along with management control to attract investors. Then the government will consider selling its entire stake. 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.
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Government and LIC hold 94% stake
The government and LIC hold over 94% equity in IDBI Bank. LIC holds 49.24% stake, while the government holds 45.48% stake in the bank. The non-promoter shareholding stands at 5.29%.