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IDBI expected to offload 51 pc of SIDBI at Rs 30 a share
The Industrial and Development Bank of India (IDBI) has fixed the share price of its Subsidiary Small Industries Development Bank of India (SIDBI) at Rs 30 a share and is expected to make a capital gain of Rs 460 crore this fiscal.
The Industrial and Development Bank of India (IDBI) has fixed the share price of its
Subsidiary Small Industries Development Bank of India (SIDBI) at Rs 30 a share and is expected to make a capital gain of Rs 460 crore this fiscal.
The IDBI board approved the proposal of offloading 51 per cent stake in SIDBI, top IDBI officials said after a meeting in New Delhi.
It has been decided that IDBI will hold 49 per cent stake in SIDBI with remaining 51 per cent being held by banks and Financial Institutions (FIS) including LIC and GIC, IDBI Chairman G B Gupta told PTI adding that the price was fixed at Rs 30 per share.
IDBI is expected to make a capital gain of Rs 460 crore by offloading about 23 crore shares to FIS and banks, likely by the end of this fiscal, official sources said.
The officials were non-committal on the proportion of stake that FIS and banks like life insurance corporation, State Bank of India would take in SIDBI, saying a formula was being worked out taking into account the exposure of the respective players in the small scale sector, their deposit growth and other parameters.
According to an earlier report of merchant bankers SBI capital markets, the shares were valued between Rs 48-66 per share based on various methods of valuation yield and averaged to Rs 58 per share.
Bureau Report
It has been decided that IDBI will hold 49 per cent stake in SIDBI with remaining 51 per cent being held by banks and Financial Institutions (FIS) including LIC and GIC, IDBI Chairman G B Gupta told PTI adding that the price was fixed at Rs 30 per share.
IDBI is expected to make a capital gain of Rs 460 crore by offloading about 23 crore shares to FIS and banks, likely by the end of this fiscal, official sources said.
The officials were non-committal on the proportion of stake that FIS and banks like life insurance corporation, State Bank of India would take in SIDBI, saying a formula was being worked out taking into account the exposure of the respective players in the small scale sector, their deposit growth and other parameters.
According to an earlier report of merchant bankers SBI capital markets, the shares were valued between Rs 48-66 per share based on various methods of valuation yield and averaged to Rs 58 per share.
Bureau Report