IDBI Bank Strategic Sale: Govt, LIC To Become Public Shareholders After Stake Sale, Says DIPAM Secretary (AI-generated Image)
\n\nThe Government and Life Insurance Corporation of India intend to become public shareholders in IDBI Bank after the proposed strategic sale to Fairfax Financial Holdings Ltd, with their equity holding capped at 15 percent and without representation on the bank's board, DIPAM Secretary Arunish Chawla told PTI.
\n\nFollowing the strategic restructuring, the responsibility to run the bank and infuse capital whenever required would rest with the strategic buyer, he stated. "Both the Government of India and LIC want to become public shareholders. To become public shareholders, you cannot hold more than 15 percent equity. You also cannot sit on the board. Otherwise, you have the same contingent liability for the bank as a promoter has," he said.
\n\nThe Department of Investment and Public Asset Management (DIPAM) Secretary further said that after the strategic restructuring, the responsibility of managing the bank and capitalising it from time to time would lie with the strategic buyer. In addition, he said, the market regulator has directed LIC to reduce its stake in IDBI Bank from post-diluted 19 percent to 15 percent. This would increase the bank's…
Original source: https://www.timesnownews.com/business-economy
