LIC IDBI Bank Deal

The government and state-owned insurer LIC, who will continue to hold significant shareholding in IDBI Bank post its privatisation, will not veto any proposals of the new owner as part of their plan to give the incoming promoters a free hand, a senior official said. The government earlier this month invited bids for the sale of 60.72 per cent stake in IDBI Bank, which is 45.48 per cent owned by the government and 49.24 per cent by the Life Insurance Corporation of India (LIC). At Friday's closing price of Rs 44.30, IDBI Bank is valued at Rs 47,633 crore but the government is looking for at least 30 per cent markup in the sale. At the current price, sale of 61 per cent stake would fetch about Rs 29,000 crore to the government. The official said post-privatisation, the government and LIC shareholding will come down to 34 per cent but they do not intend to move in tandem to block any special resolution proposed by the new promoter. This is with a view to assuaging the concerns of ...

The bank in an exchange filing said ICRA has upgraded its existing rating to ICRA A+ from ICRA A for Infrastructure bonds, Flexi Bond, Senior & Lower Tier II bonds and Subordinate debt

Of the above amount, Rs 4,700 crore will be infused by LIC and Rs 4,557 crore will be infused by the government.

Insurer's stock portfolio has underperformed the Sensex

The bank's Board in its meeting considered letter from LIC expressing interest in acquiring 51 per cent controlling stake

Having received the approval from its board, state-owned LIC will now approach markets regulator Sebi

Insurance regulator Irdai has already given its approval to LIC for the stake purchase, a move which will help the debt-ridden bank get a capital support of Rs 100- Rs130 billion