Govt to cut stake in IDBI to 58 pc

New Delhi, June 11: The government will reduce its stake in Industrial Development Bank of India (IDBI) from 72 per cent to 58 per cent by converting a portion of its equity into convertible preference issue.

Government currently hold 48,55,80,000 shares constituting 72.14 per cent in the financial institution.

Individuals, who hold 7,31,66,731 shares comprising 10.87 per cent is the second largest shareholder in IDBI. Earlier, prior to its IPO in 1995, IDBI had resorted to preference share capital. The preference share capital constituting Rs 170 crore was redeemed before the fiscal 1996.