Mumbai, Dec 19 (IANS): The Life Insurance Corporation (LIC) has made an open offer to acquire 26 per cent stake in the public sector lender IDBI Bank for Rs 61.73 a share.

Currently, the Securities and Exchange Board of India (SEBI) norms mandate an open offer if a company acquires up to 25 per cent stake in a listed entity.

According to a BSE filing by the bank on Tuesday, LIC's open offer is to acquire "2,04,15,12,929 fully paid-up equity shares of face value of Rs 10 each representing 26 per cent of the fully diluted voting equity share capital" of the lender.

"This is to inform that IDBI Bank is in receipt of final 'Letter of Open Offer' from LIC...for acquisition of 2,04,15,12,929 fully paid-up equity shares...from the equity shareholders of IDBI Bank, in connection with LIC's acquisition of 51 per cent controlling stake in IDBI Bank", the filing said.

In August 2018, the Union Cabinet had approved the purchase of controlling 51 per cent stake in IDBI by the LIC, which will make the government a minority shareholder in the bank.

The nod was a bid to turnaround the loss-making government-owned IDBI Bank struggling with accumulated bad loans.