(ET)
State-run Life Insurance Corporation may need to pay a premium for IDBI Bank’s real estate and non-core assets, two officials aware of the matter said. IDBI Bank has started valuing its assets before making a preferential issue of shares to LIC, which is set to acquire a majority stake in the lender. The valuation exercise is expected to be completed by August 15, one of the officials said, adding that the sum-of-the-parts value would be more than what the stock price currently suggests.
“The stock price is not the real valuation of IDBI Bank. This exercise will help to arrive at the value of the firm taking into consideration all its assets,” said the official, adding that this would help the bank get more capital and strengthen itself quickly.
