India's IDBI rises as SEBI clears LIC's reclassification, paving way for strategic stake sale

IDBI Bank

25/08/2025 05:07

Corrects typographical error in bullet 7

** IDBI bank IDBI.NS rises ~2% to 96.53 rupees; Life Insurance Corporation LIFI.NS flat

** SEBI approves LIC request to be reclassified as public shareholder from promoter status in IDBI bank, paving way for strategic stake sale

** Reclassification removes LIC's board representation, strategic influence in lender, aligning its role with that of a financial investor

** SEBI approves on condition that LIC does not exercise control or have board representation, limits voting rights to 10%

** Says LIC must trim stake to within 15% in two years of reclassification

** Government and LIC, which hold 45.48% and 49.24% stakes in IDBI Bank, respectively, plan to jointly sell 60.7% stake in lender; sale first announced in 2022

** IDBI gains 26%, LIFI down 0.7% YTD

 (Reporting by Urvi Dugar)

 ((UrviManoj.Dugar@thomsonreuters.com;))