New Delhi: Lic’s Holding Holding at Idbi Bank will be sold together with government shares in lenders, but the right quantum of share dilution has not been decided, the Investment Department and Management of Public Assets (Depam) has said.
The central government and Joint LIC have more than 94 percent of IDBI bank equity.
LIC, currently has management control, has 49.24 percent of the shares, while the Indian government holds 45.48 percent.
The non-promoter share ownership reached 5.29 percent.
The cabinet in May has approved strategic sales from all government shares and Life Insurance Corporation (LIC) in Idbi Bank Ltd.
Responding to questions received from potential transaction advisors, Middle Depam has clarified that since LIC shares will be sold together with the government, a single transaction advisor will manage the entire stock sales process.
“The mandate received from the CCEA is to contain up to 100 percent of the government’s shares of Indonesia and LIC together with the transfer of management control.
However, the right quantum has not been done.
It will be determined, when we undergo transactions and make sure investor interest, market tastes, etc.” This is clarified that LIC pegs will be sold together with the ownership of Indonesian government shares in this transaction.
So there is only one transaction advisor, “he said.
Quantum share dilution will be declared before the RFP stage (request for proposal) transactions, he added.
This Dipam has last month inviting offers from transaction advisors and law companies to manage and provide advice on strategic sales and transfer Management control at IDBI bank.
According to the feasibility criteria described, the bidder must suggest at least one strategic strategic transaction / strategic sales / M & A activities / private equity investment transactions in RS 5,000 crore or more during the period from April 2016 to March, 2021.
Insurance Lic giants have acquired controlling shares at the IDBI Bank in January 2019.
Finance Minister Nirmala Sitharaman in the budget for 2021-22 has said the process of the Idbi Bank privatization will be completed in the current fiscal.
The government aims to clean Rs 1.75 lakh crore at the current fiscal From sales and privatization of minorities.
Rs 1.75 l Akh Crore, Rs 1 Lakh Crore is to come from selling government shares in public sector banks and financial institutions, while Rs 75,000 Crore will come as a CPSE disinvestment receipt.