IDBI Bank up 8% on Sebi nod to reclassify govt post sale-stake as 'public'
Published On: Friday, January 6, 2023 | By: Team KnowMyStock
Shares of IDBI Bank were up 8 percent at Rs 59.7 on the BSE in Friday’s intra-day trades in an otherwise subdued market after capital market regulator Securities and Exchange Board of India (Sebi) acceded to the central government’s request to reclassify its shareholding in the Bank after its disinvestment as “public holding”.The government, with a more than 45% stake in IDBI Bank, is currently classified as a co-promoter of the lender, which will be reduced to 15 percent after divestment. The government is looking to sell its 30.48% stake in IDBI Bank, while state-backed LIC will offload its 30.24% share in the lender. Also, the government must specify its intention to reclassify its shareholding in the bank as “public holding” in the letter of offer dispatched to the shareholders of the bank in connection with the open offer made by the acquirer.
SEBI granted permission for reclassification on the condition that the government's voting rights would be capped at 15 percent. Furthermore, IDBI Bank has to submit an application to the bourses for reclassification of the government holding under the ‘public’ category after the disinvestment process. The new acquirer also has to comply with the minimum public shareholding requirements within one year of the sale.
Tags: #IDBI #SEBInod #public
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