IDBI Bank in limelight
By Ruma Dubey
about 5 months ago
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.