Kolkata: IDBI Bank will complete its proposed 27% stake dilution plan in IDBI Federal Life Insurance Company Thursday, people familiar with the matter said.
The bank will sell 23% share to Belgium’s Ageas Insurance International NV, the overseas partner in the life insurance joint venture and 4% to the local partner Federal Bank.
At present, IDBI Bank holds a 48% stake in the linsuer while the Kerala-based private sector bank and Ageas have 26% interest each.
The stake sale would provide IDBI Bank Rs 595 crore, valuing the insurance company around Rs 2,200 crore. This would help the bank augment its capital.
