The government may decide to sell its entire stake in one go or in installments based on investor feedback.
The government may decide to sell its entire stake in one go or in installments based on investor feedback.
IDBI Bank Privatization The process is on and the stake sale volume will be Decision after roadshow Tuhin Kanta Pandey, Secretary, Department of Investment and Public Asset Management (DIPAM) said on Friday that the completion has been done.
Talking to the media here, he said that preparations for privatization of IDBI Bank are underway. LIC IPO Briefing.
“The quantum of exit will be known after the roadshow and then the composition of the EOI will be finalised. One thing is very certain that the management control will be passed. Presently, it is with LIC. But, at the level of equity At what level the management control will be there once we have finalized the structure of the EOI, then to be decided.”
Depending on the response of the investors, the government may decide to sell its entire stake in one go or in installments. The government holds 45.48% stake in the bank, while LIC holds 49.24%.
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.
Necessary amendments to the IDBI Bank Act have already been made through the Finance Act 2021, and transaction advisors have been appointed.
IDBI Bank became a subsidiary of LIC with effect from January 21, 2019, after the acquisition of an additional 8,27,590,885 equity shares.
On December 19, 2020, the lender was reclassified as an associate company after the bank issued additional equity shares under Qualified Institutional Placement (QIP), reducing LIC shareholding to 49.24%.
Talking about the Initial Public Offering (IPO) of LIC, Mr. Pandey said that the listing of LIC is a part of the long-term strategic vision of the Government.
Defending the reduction of LIC IPO size to 3.5% from the earlier 5%, he said it is the right size considering the capital market environment and expects significant retail participation in one of the most valuable corporations in India .
Despite the low size of around ₹20,557 crore, LIC IPO is going to be the largest ever initial public offering in the country.
So far, the amount raised from Paytm’s IPO in 2021 was the largest at ₹18,300 crore, followed by Coal India (2010) at ₹15,500 crore and Reliance Power (2008) at ₹11,700 crore.
In February, the government had planned to sell a 5% stake in the company.
LIC has fixed a price band of ₹ 902-949 per equity share for the issue. The share sale is through an offer-for-sale (OFS) of 22.13 crore equity shares and will open on May 4 and close on May 9. The shares are likely to be listed on May 17.
The offer includes reservation for eligible employees and eligible policyholders. Retail investors and eligible employees will get a discount of Rs 45 per equity share and policyholders will get a discount of Rs 60 per equity share.
LIC was formed on September 1, 1956 by merging and nationalizing 245 private life insurance companies with an initial capital of Rs 5 crore.
Its personalized product portfolio includes 32 individual products (16 participating products and 16 non-participating products) and seven individual optional rider benefits. The group product portfolio of the insurer comprises 11 products of the group.
As of December 2021, LIC had a market share of 61.6% in terms of premium or GWP, 61.4% in terms of new business premiums, 71.8% in terms of number of individual policies issued, and a market share of 88.8% in terms of numbers. had a share. Group Policies Issued PTI JD DP DP narrowly