Shares of IDBI Bank Ltd. gained as much as 9% on Thursday, August 21, after Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla said that qualified interested parties have nearly completed due diligence for the bank’s divestment.He added that all details on IDBI Bank have been shared with the interested parties, and the due diligence process is expected to be completed by September.
The strategic sale of IDBI Bank, where the government and LIC together hold over a 94% stake, is seen as a test case for the government’s privatisation programme.The Centre currently holds 45.48% in IDBI and LIC has 49.24%. The buyer will acquire a majority stake, with the government selling 30.48% of its holding and LIC selling 30.24% in the bank.
Total dilution will aggregate to 60.72% of the equity share capital of IDBI Bank, along with the transfer of management control to the buyer.
In parallel, the government has initiated preparatory work for stake dilution through offer for sale (OFS) in select public sector banks and government-owned insurers, including LIC.
First Published: Aug 21, 2025 3:15 PM IS
