The Life Insurance Corporation of India (LIC) may soon acquire about 30 per cent additional stake in public lender IDBI Bank primarily via the issuance of fresh equity shares by the bank.
Centre holds nearly 80 per cent stake in the firm and the deal will most probably involve real estate and non-crore entities of the bank estimated to be around Rs 14,000 crore.
LIC currently holds 10.82 per cent stake in IDBI Bank.
According to the sources, the current market value of the bank is estimated to be Rs 24,000 crore and it does not reflect its inherent value.
Its real estate worth is around Rs 7,000 crore and non-crore assets of similar value. Sources say that the bank is in the process of taking control over the complete fiasco and will post the profits soon.
It is believed by the industry experts and the government that if all the plans work out and the value of IDBI Bank increase considerably, it will be a win-win situation for all the participants.
Elets The Banking and Finance Post Magazine has carved out a niche for itself in the crowded market with exclusive & unique content. Get in-depth insights on trend-setting innovations & transformation in the BFSI sector. Best offers for Print + Digital issues! Subscribe here➔ www.eletsonline.com/subscription/
