IDBI Bank's privatisation process is on and the quantum of stake sale will be decided after the roadshow is complete, Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey said on Friday. 

The preparation for privatisation of IDBI Bank is going on, he said during a media interaction at the LIC IPO briefing.

"The quantum of exit will be known post roadshow and then the structure of EoI will be finalised. One thing is very sure that management control will be passed on. Currently, it is with LIC. But, management control at what level of equity will have to be decided when we have decided the structure of EoI," he said.

The government may decide to sell its entire stake in one go or in tranches, depending on the investors' response. The government holds a 45.48 per cent stake in the bank, while LIC holds a 49.24 per cent stake.

The Cabinet Committee on Economic Affairs had given in-principle approval for strategic disinvestment and transfer of management control in IDBI Bank in May last year.

Necessary amendments to the IDBI Bank Act have already been made through the Finance Act 2021, and transaction advisors have been appointed.

IDBI Bank became a subsidiary of LIC with effect from January 21, 2019, following the acquisition of an additional 8,27,590,885 equity shares.

On December 19, 2020, the lender was reclassified as an associate company due to the reduction of LIC shareholding to 49.24 per cent, following the issuance of additional equity shares by the bank under Qualified Institutional Placement (QIP).