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IDBI Bank sale: Clarity on sale glide path for buyers after EoI stage

Currently, the RBI guidelines require promoters to reduce their shareholding to 26 per cent in 15 years

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Buying 25 per cent shares of a listed company triggers an open offer that requires the party to buy 26 per cent stake from the public

Nikunj Ohri

3 min read Last Updated : Jul 28 2022 | 1:50 AM IST

The after-acquisition sale glide path for bidders looking to buy the Centre’s and Life Insurance Corporation (LIC) of India’s stake in IDBI Bank may be communicated to interested buyers after floating expressions of interest (EoIs) as the discussions with the Reserve Bank of India (RBI) are still under way.

Based on discussions between the Centre and the RBI, corporates will not be allowed to participate in the bidding process since the central bank regulations do not allow corporate ownership of banks, informed an official.

Currently, the RBI guidelines require promoters to reduce their shareholding to 26 per cent in 15

Topics : Reserve Bank of India LIC-IDBI bank IDBI Bank Banking sector Indian banking sector banks in india IDBI Federal Life RBI RBI Policy

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