LIC board explores open offer for IDBI Bank
September 4, 2018
ETMarkets.com|
Updated: Sep 04, 2018, 01.38 PM IST
LIC) board is exploring an open offer for IDBI Bank shareholders,
Economic Affairs Secretary Subhash Chandra Garg has
said.
Garg said the board has laid out the
timeline for the completion of 51 per cent stake acquisition in IDBI Bank. He
did not share details of the timeline.
On whether Sebi will exempt LIC from
open offer, Garg said market regulator Sebi will decide whether to provide any
exemption.
These comments come after the board
of IDBI Bank last week approved a proposal seeking shareholders' nod for
preferential issue of equity capital to the largest domestic insurer,
aggregating up to 14.90 per cent of the lender’s post issue paid up capital.
LIC intends to increase its stake in
IDBI Bank to 51 per cent.
ET Now had earlier reported that the
insurance behemoth may complete acquisition of controlling stake in IDBI Bank
in two-three tranches.
The move will mark the entry of the
insurance behemoth into the banking space.
In August, the Cabinet had approved
LIC's proposed acquisition of up to 51 per cent stake in IDBI Bank.
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