The government is holding roadshows for IDBI Bank privatisation and will come out with expression of interest (EoI) after assessing investor interest, Minister of State for Finance Bhagwat Karad said on Monday.
The Cabinet Committee on Economic Affairs had in May last year given in-principle approval for strategic disinvestment and transfer of management control in IDBI Bank. The government and LIC together own more than 94 per cent equity of IDBI Bank. However, the exact quantum of stake dilution is yet to be decided.
In a written reply to the Lok Sabha, Karad said it is expected that the strategic buyer will infuse funds, bring new technology and best management practices in IDBI Bank and shall generate more business without dependence on LIC and government for capital.
LIC, currently having management control, has a 49.24 per cent stake, while the government holds 45.48 per cent in the bank. Non-promoter shareholding stands at 5.29 per cent.
"... roadshows are currently being held to assess the investors' interest before floating the Expression of Interest (EoI)," Karad said.
The minister further said that while deciding the terms and conditions of the strategic sale, legitimate concerns of the existing employees and other stakeholders are suitably addressed through appropriate provisions made in the share purchase agreement.
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