IDBI to slash IDBI- Principal holding to 30 per cent

The IDBI is all set to reduce its stake in IDBI-Principal Asset Management Company Ltd to 30 per cent from the current level of 50 per cent in favour of the US-based Principal Financial Group.

IDBI-Principal Asset Management Company’s managing director and chief executive officer Sanjay Sachdev said: ‘‘At this point of time, talks are still underway with the promoters of the joint venture (IDBI and Principal). However, no decision has been taken in this regard.’’ The move is aimed at Principal getting complete control of the affairs of the mutual fund. It has been gathered that the Principal Financial Group asked for a controlling stake in the venture but IDBI bettered the proposal by offering to offload at least 20 per cent in favour of Principal. Sources said it did not make sense for IDBI to offload just one per cent and lose out on control. But rather that it sell a significant part of its stake and monetise its investments in the MF.