Tuhin Kanta Pandey, Secretary of the Department of Investment and Public Asset Management (DIPAM), said on Friday that the IDBI Bank privatisation process is underway and that the quantum of the stake sale will be determined when the roadshow is completed, as per PTI reported.

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During a media interaction at the LIC IPO briefing, he said that preparations for the privatisation of IDBI Bank are underway.

"The quantum of exit will be known post roadshow and then the structure of EoI will be finalised. One thing is very sure that management control will be passed on. Currently, it is with LIC. But, management control at what level of equity will have to be decided when we have decided the structure of EoI," he said.

According to PTI, depending on investor interest, the government may opt to sell its full stake all at once or in tranches. The government owns 45.48 percent stake in the bank, while the Life Insurance Corporation owns 49.24 percent.

In May of last year, the Cabinet Committee on Economic Affairs gave in-principle approval for strategic disinvestment and management control transfer in IDBI Bank.

The Finance Act 2021 has already made necessary amendments to the IDBI Bank Act, and transaction advisors have been hired, said PTI.

Following the acquisition of an additional 8,27,590,885 equity shares, IDBI Bank became a subsidiary of LIC on January 21, 2019.

Following the issue of additional equity shares through Qualified Institutional Placement (QIP), the lender was reclassified as an associate company on December 19, 2020, due to the reduction of LIC shareholding to 49.24 percent.

When asked about LIC's initial public offering (IPO), Pandey stated that the company's listing is part of the government's long-term strategic vision.

He defended the LIC IPO size decrease from 5% to 3.5 percent, saying it is the correct size considering the capital market situation and expects significant retail participation in one of India's most valuable firms, PTI said.

Even with the reduced size of roughly Rs 20,557 crore, the LIC IPO will remain the country's largest initial public offering.

According to PTI, the sum raised by Paytm's IPO in 2021 was the largest ever, at Rs 18,300 crore, followed by Coal India (2010), which raised roughly Rs 15,500 crore, and Reliance Power (2008), which raised Rs 11,700 crore.

The government had planned to sell a 5% interest in the company in February.

The price band for the issuance has been set at Rs 902-949 per equity share by LIC. The offer-for-sale (OFS) of up to 22.13 crore equity shares will take place on May 4 and will close on May 9. The shares is expected to go public on May 17.

A reservation is included in the offer for eligible employees and policyholders. Retail investors and qualifying employees will receive a Rs 45 discount per equity share, while policyholders will receive a Rs 60 discount per equity share, said PTI.

On September 1, 1956, LIC was created by merging and nationalising 245 private life insurance firms, with an initial capital of Rs 5 crore.

It has 32 individual products (16 participating products and 16 non-participating products) and seven individual optional rider benefits in its individual product portfolio. There are 11 group products in the insurer's product portfolio.

LIC has a market share of 61.6 percent in terms of premiums or GWP as of December 2021, 61.4 percent in terms of new business premium, 71.8 percent in terms of individual policies issued, and 88.8 percent in terms of group policies issued.