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IRDAI clears LIC-IDBI Bank deal; insurer to invest Rs 10,000-13,000 cr in tranches

Insurance regulator IRDAI on Friday approved LIC’s plan to buy up to 51 per cent stake in IDBI Bank. The issuer is expected to invest Rs 10,000-13,000 crore in trances in the bad loan-ridden lender, ETNow quoted sources. LIC will pare stake in the bank to 15 per cent in 5-7 years. The valuations will be decided as per Sebi regulations. Post this deal, the government's stake in IDBI Bank will fall below 51 per cent as the regulator gave LIC exemption from 15 per cent investment cap. Shares of IDBI Bank today surged over 10 per cent amid reports that LIC may acquire majority stake in the company. The IDBI Bank stock zoomed 10.02 per cent to settle at Rs 54.90 on the BSE. The company's market valuation surged Rs 7,566.73 crore to Rs 22,954.73 crore.

Source: ET

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