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IDBI Bank share price jumps 9% on CCEA nod for disinvestment

The centre and LIC together own more than 94 percent of equity of IDBI Bank, with the centre owning 45.48 percent and LIC owning 49.24 percent. LIC is currently the promoter of IDBI Bank with management control and GoI is the co-promoter.

May 06, 2021 / 09:50 AM IST
IDBI Bank

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IDBI Bank share price jumped over 9 percent in the morning session on May 6 after the Cabinet Committee on Economic Affairs CCEA) gave its in-principle approval for strategic disinvestment along with transfer of management control in IDBI Bank.

The CCEA) on May 5 granted approval for the long-pending strategic disinvestment of IDBI Bank Ltd, an official statement said.

The extent of respective shareholding to be divested by government and LIC Ltd shall be decided at the time of structuring of transaction in consultation with the Reserve Bank of India, the statement added.

Also Read: CCEA clears 'strategic divestment' of IDBI Bank

The centre and LIC together own more than 94 percent of the equity of IDBI Bank, with the centre owning 45.48 percent and LIC owning 49.24 percent. LIC is currently the promoter of IDBI Bank with management control and GoI is the co-promoter.

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The stock was trading at Rs 41.45, up Rs 3.50, or 9.22 percent at 09:30 hours. It has touched an intraday high of Rs 43.50 and an intraday low of Rs 41.

The CCEA statement said that LIC’s Board has passed a resolution to the effect that LIC may reduce its shareholding in IDBI Bank Ltd through divesting its stake along with strategic stake sale envisaged by the government with an intent to relinquish management control and by taking into consideration price, market outlook, statutory stipulation and interest of policyholders.
Moneycontrol News
first published: May 6, 2021 09:50 am

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