{"id":55714,"date":"2022-07-28T13:23:00","date_gmt":"2022-07-28T07:53:00","guid":{"rendered":"https:\/\/tradebrains.in\/features\/?p=55714"},"modified":"2022-07-28T13:21:52","modified_gmt":"2022-07-28T07:51:52","slug":"lic-and-government-to-sell-up-to-65-stake-in-this-bank-stock","status":"publish","type":"post","link":"https:\/\/tradebrains.in\/features\/lic-and-government-to-sell-up-to-65-stake-in-this-bank-stock\/","title":{"rendered":"LIC and Government to sell up to 65% stake in this Bank Stock"},"content":{"rendered":"<div class=\"trade-content_2\" style=\"margin-left: auto;margin-right: auto;text-align: center;\" id=\"trade-1897718806\"><p><a href=\"https:\/\/tradebrains.in\/get\/telegram\/\"><img decoding=\"async\" class=\"alignnone wp-image-101992\" src=\"https:\/\/tradebrains.in\/features\/wp-content\/uploads\/2023\/01\/telegram-channel-300x119.png\" alt=\"\" width=\"148\" height=\"59\" \/><\/a> <a href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMN3Epgswxc--Aw?hl=en-IN&amp;gl=IN&amp;ceid=IN%3Aen\"><img decoding=\"async\" class=\"alignnone wp-image-123430\" src=\"https:\/\/tradebrains.in\/features\/wp-content\/uploads\/2024\/05\/follow-on-google-news-300x82.png\" alt=\"follow-on-google-news\" width=\"222\" height=\"61\" srcset=\"https:\/\/tradebrains.in\/features\/wp-content\/uploads\/2024\/05\/follow-on-google-news-300x82.png 300w, https:\/\/tradebrains.in\/features\/wp-content\/uploads\/2024\/05\/follow-on-google-news-150x41.png 150w, https:\/\/tradebrains.in\/features\/wp-content\/uploads\/2024\/05\/follow-on-google-news.png 468w\" sizes=\"(max-width: 222px) 100vw, 222px\" \/><\/a><\/p>\n<\/div><p>The government and the Life Insurance Corporation of India (LIC) may sell up to 65% of their stake in IDBI Bank before the end of the current financial year.<\/p><div class=\"trade-content_7\" style=\"margin-left: auto;margin-right: auto;text-align: center;\" id=\"trade-3482927223\"><!-- Composite Start --> \r\n <div id=\"M923760ScriptRootC1549812\"> \r\n <\/div> \r\n <script src=\"https:\/\/jsc.mgid.com\/t\/r\/tradebrains.in.1549812.js\" async> \r\n <\/script> \r\n <!-- Composite End --><\/div><p>These majority stakeholders will have to do a basic benchmark in terms of ceding ownership in the bank. The process may start with 51% odd and then they might go up to 65%. This means that the LIC and the government might be left with up to a 35% odd stake. Currently, they hold a 95% stake in the bank. The government holds 45.5% while the LIC holds 49.24%.<\/p><p>The strategic sale of the shares was approved by the Cabinet in May. Further, the DIPAM, on July 9th announced that the Cabinet Committee of Economic Affairs (CCEA) has given its go-ahead to the government and LIC to offload 100% of their stake in IDBI Bank, along with a transfer of management.&nbsp;<\/p><p>The expression of interest (EOI) has yet to come out and a certain process has to be followed. The government might be looking at August- September as a target for the EOI for selling their stake in the bank. If that happens then the government will have nine to twelve months of timeline left to wrap up the transaction.<\/p><div class=\"trade-content_5\" id=\"trade-3773585380\"><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-4023722985638610\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<!-- in_content_2_news -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-4023722985638610\"\r\n     data-ad-slot=\"7925020301\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><\/div><p>Discussions are going on with the RBI and it might be possible that private equity investors may be given a majority play in the IDBI Bank divestment process.&nbsp;<\/p><p>Earlier this month, the government said that it has completed the strategic divestment of Odisha-based Neelachal Ispat Nigam Ltd (NINL) to Tata Steel Long Products Ltd.<\/p><p>The Department of Investment and Public Asset Management (DIPAM) on July 9 had clarified that there will be only one transaction advisor who would manage the entire share sale process as the LICs stake will be sold alongside the government.<\/p><p>The government had urged the RBI to give the potential buyer some leeway in complying with the regulatory norms for private banks, including a time-bound reduction in promoter holding, in order to make the deal attractive.<\/p><p>Further, it wants a longer window for the IDBI Bank to comply with the market regulator\u2019s minimum public float norm of 25% for listed companies. According to the RBI\u2019s norms that were revised in November 2021, the promoters of private banks have to maintain a minimum of 40% of the paid-up voting equity share capital of the bank for the first five years after the start of operations.<\/p><p>In the past three months, the shares of the company have fallen by more than 23%. They are currently trading at \u20b9 35.50 apiece.<\/p><div class=\"trade-content-10\" id=\"trade-506996823\"><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-4023722985638610\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<!-- in_content_3_news -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-4023722985638610\"\r\n     data-ad-slot=\"2969612066\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><\/div><p>IDBI Bank reported losses for five years after which it reported a net profit of \u20b9 1,359 crores for FY21 and \u20b9 2,439 crores for FY22.<\/p><blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p><strong>Written by Simran Bafna<\/strong><\/p><\/blockquote><h4 class=\"wp-block-heading\" id=\"h-disclaimer\"><strong>Disclaimer<\/strong><\/h4><div class=\"wp-block-image\"><figure class=\"aligncenter size-full is-resized\"><img decoding=\"async\" src=\"https:\/\/tradebrains.in\/features\/wp-content\/uploads\/2022\/02\/warning-disclaimer.png\" alt=\"\" class=\"wp-image-26306\" width=\"256\" height=\"256\"\/><\/figure><\/div><p><strong>The content in this news article is not investment advice. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.<\/strong><\/p><div class=\"trade-after-content\" id=\"trade-1317890871\"><div id=\"taboola-below-article-thumbnails\"><\/div>\r\n<script type=\"text\/javascript\">\r\n  window._taboola = window._taboola || [];\r\n  _taboola.push({\r\n    mode: 'alternating-thumbnails-a',\r\n    container: 'taboola-below-article-thumbnails',\r\n    placement: 'Below Article Thumbnails',\r\n    target_type: 'mix'\r\n  });\r\n<\/script>\r\n<script type=\"text\/javascript\">\r\n  window._taboola = window._taboola || [];\r\n  _taboola.push({flush: true});\r\n<\/script><\/div>","protected":false},"excerpt":{"rendered":"<p>The government and the Life Insurance Corporation of India (LIC) may sell up to 65% of their stake in IDBI Bank before the end of the current financial year. These majority stakeholders will have to do a basic benchmark in terms of ceding ownership in the bank. The process may start with 51% odd and [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":15408,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[31,1789],"tags":[4490,4489,4491,3976,3157],"class_list":["post-55714","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-trending-news","tag-idbi-bank","tag-idbi-privatisation","tag-lic-disinvestment","tag-stock-to-avoid","tag-stock-to-watch"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v20.5 (Yoast SEO v25.0) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>LIC and Government to sell up to 65% stake in this Bank Stock - Trade Brains Features<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/tradebrains.in\/features\/lic-and-government-to-sell-up-to-65-stake-in-this-bank-stock\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"LIC and Government to sell up to 65% stake in this Bank Stock\" \/>\n<meta property=\"og:description\" content=\"The government and the Life Insurance Corporation of India (LIC) may sell up to 65% of their stake in IDBI Bank before the end of the current financial year. 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