Life Insurance Corporation Of India has informed the Exchange about General updates about DIPAM has informed that SEBI has approved the reclassification the LICI as a Public Shareholder of IDBI subject to certain conditions.
LICI · price
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LIC has informed stock exchanges that SEBI has approved reclassifying LIC's shareholding in IDBI Bank as 'public' instead of 'promoter', as part of the government's ongoing strategic disinvestment of IDBI Bank originally approved in May 2021. This reclassification is subject to nine conditions, including capping LIC's voting rights at 10%, no board representation, no control over IDBI Bank affairs, and no special rights. Crucially, LIC must bring down its residual shareholding in IDBI Bank to 15% or below within two years of the transaction's closing, as directed by RBI. The reclassification will take effect upon completion of the disinvestment transaction and the open offer by the new acquirer.
This is a positive procedural step in the IDBI Bank disinvestment process, removing a key regulatory hurdle. For LIC shareholders, it signals LIC's gradual exit from its strategic stake in IDBI Bank, which will free up capital but also end LIC's significant influence over the bank. The mandatory stake reduction to below 15% over two years means LIC will need to divest further in the open market or through the offer.