The board of the state-run lender IDBI Bank Ltd has given approval to sell part of all of its 16.6 per cent stake in the domestic ratings agency Credit Analysis and Research Ltd (CARE) in one or more tranches, as per a stock market disclosure.
IDBI’s stake is currently worth Rs 683 crore or roughly $105 million.
Early this year a consortium of five shareholders of CARE, including the single largest stakeholder IDBI Bank, had said they are looking to sell a little over 38.3 per cent stake in the company. The selling shareholders together owned over 45 per cent in CARE.
Besides IDBI, other key shareholders include Canara Bank, IL&FS, SBI and Bajaj Holdings.
However, the consortium later rejected all bids submitted by prospective investors to buy the stake in the company. Baring Asia PE was reportedly among other PE investors in the fray for the stake.
CARE valuation has almost doubled since early this year which makes it more lucrative for existing shareholders.
Some of the key shareholders like Canara Bank, Bajaj Holdings and IL&FS have already part or fully exited CARE since that time.
CARE scrip ended at Rs 1,419.6 a share, down 1.4 per cent in a strong Mumbai market on Monday.
CARE, which went public in 2012, also counts among its shareholders names like Aditya Birla PE and Ascent Capital.