In a stock market index IDBI Bank today said Life Insurance Corporation (LIC) will purchase 14.9 percent equity stake in the bank, a move that would inevitably lead to procurement of the majority stake in the state-claimed loan specialist.
In August, the Union Cabinet had approved LIC’s proposed obtaining of up to 51 percent stake paying off debtors ridden IDBI Bank.
LIC holds 7.98 percent stake in the debt-ridden open segment bank, at present.
“The Bank has received a letter dated August 28, 2018, from LIC giving their on a basic level approval for membership of the equity shares on special premise subject to their total exposure not surpassing 14.90 percent of the post-issue capital of IDBI Bank any time of time,” IDBI Bank said in an regulatory filing.
The leading group of the bank at its meeting to done on August 31 for discussing stock market index will think about the proposal for looking for investors’ approval through postal ticket for the special issue of funding to LIC, amassing up to 14.90 percent of the bank’s post-issue paid-up capital, it included.
Meanwhile, sources said that the stake deal would deal with the quick need of IDBI Bank and help it meet capital sufficiency norms towards the end second quarter.
IDBI Bank shares had dropped forcefully by more than 5 percent to multi day’s low of Rs 57.85 after the announcement.
However, the stock recouped from lows in the most recent hour of trade to settle around 0.82 percent at Rs 60.80 on BSE.
As many as 30.46 lakh offers of the bank were exchanged on the course.
The bank had posted a net loss of Rs 2,409.89 in the quarter ending June 2018 in a stock market index, according to the report collected by Economic Times. It had a Gross Non-Performing Asset (NPA) of about Rs 57,807 crore.
The post Stock Market Index: IDBI Bank Announces LIC Will Buy 14.9 Percent Equity Stake In The Bank appeared first on OWLT Market.
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