IDBI Bank in limelight

about 2 months ago
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IDBI Bank is currently the top gainer on the BSE, rising 11% to an intraday high at Rs.47.40 on the back of a three times rise in volumes. Its 52-week high is at Rs.65.25.

The trigger which everyone was waiting for finally happened on Friday – the Govt  invited bids for privatising IDBI Bank.

The Govt along with LIC will sell a total of 60.72% stake in the financial institution while relinquishing management control too.

Govt currently holds 45.48% and LIC holds 49.24% and together, the total stake held is 94.71%.

Conditionalities set out by the Department of Investment and Public Asset Management (DIPAM), while inviting Expressions of Interest (EoI) from potential investors:

  • Should have a minimum net worth of Rs.22,500 crore
  • Must report net profit in three out of the past five years
  • Maximum of four members would be allowed in a consortium
  • Mandatory lock-in of at least 40% of the equity capital for five years from the date of acquisition.
  • Selection will be done by RBI
  • Bidder would have to clear the 'Fit and Proper' assessment done by the banking regulator.
  • Large industrial/corporate houses or individuals barred from participating in the bidding process.
53.90 (+0.75)

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