IDBI plans NSE stake sale

The bank currently owns 2.2 mn shares in the exchange, equal to a 4.99% stake

Mumbai-based IDBI Bank plans to offload stake in the National Stock Exchange. The move is in line with guidelines on investments in non-core banking activities of public sector banks, according to an exchange notification.

"IDBI Bank is beginning the process of inviting bids through advertisement route for sale of its equity holdings in National Stock Exchange," it said.

The bank currently owns 2.2 million shares in the exchange, equal to a 4.99% stake, according to the bourse's latest annual report. Other stakeholders include SHICL, GA Global Investments Limited, GS Strategic Investments Limited, SAIF II SE Investments Mauritius Limited and Aranda Investments (Mauritius) Pte. Ltd. Each hold around five% each.

The Life Insurance Corporation of India which holds 10.51% stake in the exchange, making it the largest stakeholder. The State Bank of India holds 10.19%. Delhi-based finance company IFCI, holds 5.55%.

IFCI had previously announced plans to unload 2.5% stake in the exchange, a plan which was later postponed on valuation issues. IDFC is said to have sold a portion of its holdings in November 2013 at a valuation of Rs.4200 per share. This would value IDBI?s stake at around Rs.1000 crore.

IDBI was closed with losses on Monday. It was down 0.65%, closing at Rs.68.7.