Stocks

Govt, LIC mull at least 51% stake sale in IDBI Bank: ET NOW sources

NEW DELHI: The government and life insurer , which together own 94.71 per cent stake in , are weighing in on selling at least 51 per cent stake in the lender, sources told ET NOW.

The stock climbed 5.12 per cent to hit a high of Rs 41 a piece on BSE. A 51 per cent stake in IDBI Bank at the prevailing market capitalisation amounted to Rs 22,017 crore.

India will formally gauge interest in IDBI Bank as soon as September, sources told ET NOW, adding that the government may likely keep some IDBI Bank shares after the sale.

Earlier, ET had reported that the centre had reached out to global buyout funds and financial institutions, such as the Carlyle Group, TPG Capital and Prem Watsa-controlled Fairfax Holdings, to gauge investor interest in buying majority stakes held directly by the government and LIC in the bailed-out lender.

Data showed the government ownership in the bank stood at 45.48 per cent while LIC owned another 49.24 per cent stake in the lender as of June 30.


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