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Life Insurance Corporation of India’s (LIC) board has given approval to acquire a majority stake in IDBI Bank, mostly through a preferential allotment of shares.
LIC will be holding 51% stake in IDBI Bank after the deal and will be the bank’s largest shareholder. The board of the company comprises of 12 members, including Chairman VK Sharma and its four managing directors as members, among others.
Subhash Chandra Garg, Economic Affairs Secretary stated that, LIC will make an open offer if necessary. Further, the deal needs to be approved by the Union cabinet, Securities and Exchange Board of India, and the Reserve Bank of India.
