LIC board to meet today to finalise IDBI Bank stake buy

| | New Delhi

The board of insurance behemoth LIC is scheduled to meet on Monday to finalise the acquisition of 51 per cent stake in IDBI Bank, sources said.

The due diligence process by LIC is complete as per the directions of Insurance Regulatory and Development Authority of India (Irdai), they said.

State-owned Life Insurance Corporation will approach markets regulator Sebi after getting approval from its board, which will meet in Mumbai.

Irdai has already given its approval to LIC for the stake purchase, a move which will help the debt-ridden state-owned bank get a capital support of Rs  10,000- 13,000 crore.

“The LIC-IDBI Bank deal will trigger an open offer to protect the interest of minority shareholders in the bank,” said a source.

As per Sebi takeover code, an acquirer has to give an open offer to the shareholders of target company on acquiring shares or voting rights of 25 per cent or more.