IDBI Bank-Fairfax deal: Government to retain 15% stake, LIC to hold 19%

The government will retain a 15% stake in IDBI Bank after its strategic restructuring. Additionally, Life Insurance Corporation of India (LIC) will continue to hold 19%, according to the Ministry of Finance.

In a set of frequently asked questions (FAQs) released on October 14, the ministry said both the government and LIC would withdraw their nominees from IDBI Bank’s board and become public shareholders.

The Cabinet Committee on Economic Affairs has also authorised the Alternative Mechanism to sell the government’s remaining stake in the open market, following the prescribed procedures for minority stake sales.


LIC, meanwhile, will have the freedom to decide how it manages its remaining stake in the bank, subject to its internal procedures and regulatory requirements.