IDBI Bank divestment: SEBI approves reclassification of LIC as a public shareholder. Check details

IDBI Bank divestment: The private sector institutional lender, IDBI Bank, on Saturday, 23 August 2025, disclosed that the capital markets regulator, the Securities and Exchange Board of India (Sebi), has approved the reclassification of Life Insurance Corporation of India (LIC) as a public shareholder in the firm.

“We have been informed by Department of Investment and Public Asset Management, Government of India (DIPAM) that the Securities and Exchange Board of India (Sebi) has approved the reclassification of the Life Insurance Corporation of India (LIC) as a ‘public shareholder’ of the IDBI Bank,” the lender informed BSE through the filing.

The company also disclosed that the status of a ‘public shareholder’ will only be subject to the condition that the company's (LIC) voting rights in the bank are not more than 10% of the total voting rights.

As per the regulations, LIC will not be able to directly or indirectly exercise control over IDBI Bank's affairs, have any special rights, and shall not represent on the bank's board of directors.

After the State-owned company's strategic divestment in the lender, LIC shall reduce its residual shareholding in the IDBI Bank to 15% or lower within two years of the closing date.

LIC will also need to file a reclassification application with the Indian stock exchanges to change its status after the strategic disinvestment transaction is completed.

IDBI Bank shares closed 2.67% lower at ₹95 after Friday's stock market session, compared to ₹97.61 at the previous market close. The bank announced the divestment update on Saturday, 23 August 2025.

Shares of the bank have given stock market investors more than 119% returns on their investment in the last five years. However, the shares have lost 3.77% in the last one-year period.

On a year-to-date (YTD) basis, the shares of IDBI Bank have gained 23.54% in 2025 and are trading 7.55% higher in the last five market sessions on the Indian stock market.

IDBI Bank stock hit its 52-week high level at ₹106.34 on 30 June 2025, while the 52-week low level was at ₹65.89 on 13 January 2025, according to the data collected from the BSE website. The institutional lender's market capitalisation (M-Cap) stood at more than ₹1.02 lakh crore as of the stock market close on Friday, 22 August 2025.

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