IDBI Bank divests stake in asset management arm

IDBI Bank informed the exchanges on Tuesday about the divestment in its asset management arm, namely, IDBI Bank Asset Management Ltd. (IAML) and IDBI MF Trustee Company Ltd. (IMTL). Reacting to the news, the stock of the company rose by 3.04 per cent.
 
IDBI Bank has owned 66.67 per cent stake in IDBI Asset Management, with IDBI Capital Markets and Securities, holding a 33.33 per cent stake. According to market reports, Muthoot Finance Ltd. will be buying IDBI Asset Management Ltd. and the deal, that is, in its final stage is expected to close before the end of week.
 
During FY19, IDBI Asset Management managed 22 schemes, comprising of 12 equity fund schemes, six debt fund schemes, two-hybrid fund schemes, and one each of gold fund of Funds and Gold Exchange Traded Funds scheme.
 
The IDBI Bank, which is owned by Life Insurance Corporation of India (LIC), is looking to sell its non-core assets, including equity stakes. With ICICI Securities Ltd. as its advisor, the bank is also looking to exit from IDBI Federal Life Insurance Co. Ltd., it life insurance venture, in which it holds a 48 percent stake, whereas, Federal Bank and Ageas own 26 per cent stake each.
 
On Tuesday, the stock of the company closed at Rs. 33.85, up by 3.04 per cent or Re. 1. The 52-week high is Rs. 65.80 and 52-week low is Rs. 23.55 on BSE.