(PTI) IDBI Bank on Thursday said the Sebi has permitted the Union government to classify its stake in the bank as "public" after its stake sale on condition that its voting rights do not exceed 15 per cent of the total voting rights.
The intention of the Government of India to get its shareholding re-classified as public holding shall be specified in the letter of offer dispatched to the shareholders of IDBI Bank in connection with open offer made by the new acquirer, IDBI Bank said citing the letter of Sebi.
After completion of the strategic disinvestment, IDBI Bank has to make an application to the Stock Exchanges for reclassification of Government of India holding under the public category, it said in a regulatory filing.
Further, the Securities and Exchange Board of India (SEBI) has also directed the new buyer to comply with minimum public shareholding norms within one year of the sale, it said.
Last month, the government extended the deadline to submit preliminary bids for the lender till January 7.
The government and LIC together are looking to sell 60.72 per cent of IDBI Bank and had invited bids from potential buyers in October. The last date for submitting expression of interest (EoI) or preliminary bids was December 16.
The government and Life Insurance Corporation (LIC) hold 94.71 per cent stake in IDBI Bank.
The successful bidder will have to make an open offer for acquisition of 5.28 per cent stake from public shareholders.
The government, with a more than 45 per cent stake in IDBI Bank, is currently classified as a co-promoter of the lender. The government is looking to sell its 30.48 per cent stake in IDBI Bank, while state-backed LIC will offload its 30.24 per cent share in the lender.
Earlier this week, the government exempted public sector entities from the Minimum Public Shareholding (MPS) norm which mandates at least 25 per cent public float for all listed companies.
The exemption would apply to these entities regardless of the government's direct or indirect holding.