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IDBI Bank is set to receive Rs 20,000 crore through an open offer as the insurance giant, Life Insurance Corporation (LIC), is set to acquire a majority stake of the bank in the month of December.
Rakesh Sharma, MD and CEO of IDBI Bank said, “We will receive Rs 20,000 crore as part of the fund infusion. We are hopeful of getting it in this quarter itself (ending December).”
LIC which had earlier proposed to acquire the controlling stake in IDBI Bank by taking up a 51 per cent through a preferential issue and an open offer of equity shares. IDBI Bank said in the previous month that LIC’s open offer to purchase shares from the minority shareholders will take place from December 3 to December 14 at a share price of Rs 61.73.
Sharma has stated, “The approval from the Competition Commission of India (CCI) and the final approval from the Securities and Exchange Board of India (SEBI) is awaited.” LIC has already received the approval from the Reserve Bank of India’s (RBI).
