Post IDBI stake sale, LIC our largest shareholder: CARE

IDBI has recently sold 10 percent stake in CARE Ratings possibly to LIC which is now the largest shareholder.  CNBC-TV18'S Ritu Singh caught up with DR Dogra, MD and CEO of Care Ratings and began by asking him whether there would be any change in the shareholding pattern in IDBI post the stake sale.

Below is the transcript of DR Dogra’s interview with Ritu Singh on CNBC-TV18.

Q: Will there be any change in IDBI's shareholding pattern post the stake sale?

A: IDBI has recently sold around 10 percent and they are no more the largest shareholder now but they still have substantial stake in the company. The market believes that that stake has been sold to LIC and LIC would be the largest shareholder as of this point of time, Canara Bank would also be very close to LIC, around 10 percent. So, both would be around 10 percent. Q: Are you looking for any more strategic investments especially from the private equity (PEs) given that some of your competitors like CRISIL, etc only have an advantage because of a large global investor which in your case you don’t have? A: In fact this business doesn’t require capital so I don’t think CARE would go and issue shares and take money from private equity players. However, there could be a possibility where some of the existing investors could sell to a private equity. If that happens we have no problem working with whether bank or private equity player. Q: Are you aware of any such developments taking place at this point? A: Not to my mind.