IDBI Bank is planning to sell 27 percent stake in its life insurance arm IDBI Federal Life Insurance, informed the lender to the exchanges.
As CNBC TV 18, out of the total 27 percent stake which the lender is planning to divest, 23 percent stake would be given to the existing joint venture partner Aegis Insurance whereas the remaining 4 percent stake would be offered to Federal Bank.
Aegis Insurance currently acquires 26 percent stake in IDBI Federal Life Insurance and with this new development, the insurer will be able to raise the level of its stake hold IDBI Federal Life Insurance to 49 percent.
Besides, Federal Bank will be able to level-up its stake to 30 percent from the current 26 percent while IDBI Bank’s stake in IDBI Federal Life Insurance will decline to 21 percent from the current 49 percent.
IDBI Bank has also communicated to the exchanges that it would be raising Rs 595 crore via this transaction which would also give the life insurer at around Rs 2,200 crore.