NEW DELHI: The life Insurance Corporation of India (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.
The board of Insurance Regulatory and Development Authority of India (Irdai) in June had permitted LIC to go ahead with the stake buy.
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