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IDBI Bank sale: Clarity on sale glide path for buyers after EoI stage

Currently, the RBI guidelines require promoters to reduce their shareholding to 26 per cent in 15 years

IDBI Bank
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Buying 25 per cent shares of a listed company triggers an open offer that requires the party to buy 26 per cent stake from the public

Nikunj Ohri
The after-acquisition sale glide path for bidders looking to buy the Centre’s and Life Insurance Corporation (LIC) of India’s stake in IDBI Bank may be communicated to interested buyers after floating expressions of interest (EoIs) as the discussions with the Reserve Bank of India (RBI) are still under way.

Based on discussions between the Centre and the RBI, corporates will not be allowed to participate in the bidding process since the central bank regulations do not allow corporate ownership of banks, informed an official.

Currently, the RBI guidelines require promoters to reduce their shareholding to 26 per cent in 15

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First Published: Jul 27 2022 | 9:01 PM IST

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