The government on Friday kicked off the process of privatisation of IDBI, under which it will sell a 60.72 per cent majority stake with management control.

At present, Life Insurance Corporation (LIC) holds a 49.24 per cent stake in IDBI Bank, while the government has a 45.48 per cent stake.

Of this, the government will sell 30.48 per cent and LIC will sell a 30.24 per cent stake, aggregating to 60.72 per cent of the equity share capital of IDBI Bank, along with transfer of management control in IDBI Bank, the Department of Investment and Public Asset Management (DIPAM) said while inviting bids.

The last date for submission of EoIs for IDBI Bank is December 16. All EoIs shall be valid for 180 days and can be further extended by another 180 days. The last date for submission of physical copies of EoIs for those who have placed electronic bids is December 23.

“The successful bidder is required to make an open offer to public shareholders of IDBI Bank,” DIPAM said.

The new promoter of the bank will also have 15 years to meet the RBI’s maximum shareholding norms of 15 per cent.

“The successful bidder will be required to reduce/ dilute its shareholding in accordance with the glide path to be submitted by the QIPs at the RFP stage to align its shareholding in accordance with the ‘Master Directions on Ownership in Private Sector Banks, 2016’,” the document said.