Government & LIC To Sell 60.7% Stake In IDBI Bank; Strategic Sale May Conclude In A Month

The Government of India and state-run Life Insurance Corporation of India (LIC) have moved a step closer to the strategic sale of their combined 60.7 per cent stake in IDBI Bank, with revised financial bids submitted by Canada's Fairfax Financial Holdings and Dubai-based Emirates NBD currently under evaluation.

Government sources told ANI that the disinvestment process is likely to be concluded within a month.

Senior panel reviews progress

According to the sources, the revised bids are being examined, and a senior panel of bureaucrats reviewed the progress of the transaction during a meeting held on Monday.

The proposed transaction is part of the Centre's strategic disinvestment programme and involves the Government of India and LIC jointly divesting their combined 60.7 per cent stake in IDBI Bank.

Government, LIC holdings

At present, the Government of India holds a 45.48 per cent stake in IDBI Bank, while LIC owns 49.24 per cent.

Sources said the evaluation process is progressing, with the stake sale expected to be concluded within the next month, subject to the completion of the required procedures.

Fairfax, Emirates NBD remain in contention

Canada's Fairfax Financial Holdings, founded by Indian-born Canadian billionaire Prem Watsa, and Dubai-based Emirates NBD remain the two contenders to acquire the controlling stake in IDBI Bank.

The proposed acquisition is estimated to be valued at around USD 5.7 billion at current market prices and, if completed, would rank among the largest foreign investments in India's banking sector.

IDBI Bank shares gain

At the time of reporting, IDBI Bank shares were trading at Rs 87.69 apiece, up 4.31 per cent, as investors tracked developments surrounding the strategic stake sale.

(With inputs from ANI)