LIC shares touched a high of Rs 402.50, up 2.39% from their previous close of Rs 393.10. The stock opened at Rs 402 and touched a low of Rs 395.35 during the session.
Following the transaction, LIC will retain a 19% stake in IDBI Bank, while the government will hold a residual 15% stake. The Ministry of Finance said both shareholders would withdraw their nominees from the bank's board and become public shareholders.
The government has also authorised the Alternative Mechanism to undertake the sale of its remaining 15% stake in IDBI Bank through the open market, following the prescribed procedure. LIC, meanwhile, will be free to manage its residual shareholding in accordance with its internal procedures and regulatory requirements.
The successful bidder will have to present its credentials to the Reserve Bank of India (RBI) under the Fit and Proper assessment and submit a roadmap for complying with the regulatory conditions prescribed by the central bank. The transaction will be completed subject to these requirements.
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