SEBI approved LIC's request to be reclassified as a public shareholder in IDBI Bank, enabling strategic divestment.
Under the new framework, LIC must reduce board presence and limit voting to 10%, lowering its stake to ≤15% within
two years.
The government currently holds ~45.48%, and LIC about 49.24%; combined, they plan to dilute 60.7% as market-readied.
The decision fast-tracks IDBI’s privatization—expected to culminate between October and December 2025.
Potential buyers include high-profile global names like Emirates NBD and Prem Watsa’s Concord.
IDBI shares have surged ~25% year-to-date, reflecting strong market sentiment ahead of monetization.
The move signals India’s broader push to shrink state control over non-core banking entities.
It exemplifies how regulatory tweaks can pave privatization pathways.
The outcome may set a template for future PSU privatizations.
Liberalizing market structure while maintaining oversight rem
ains a core objective.