IDBI Bank Sells 21.14% Stake in PIPDIC to Government of Puducherry, Know all details
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IDBI Bank has sold its entire 21.14% stake in the Pondicherry Industrial Promotion Development and Investment Corporation Ltd. (PIPDIC) to the Government of Puducherry for ₹18.83 crore. This move marks a significant change in the ownership structure of PIPDIC, which was previously an associate company of IDBI Bank. The government has announced the privatisation of IDBI Bank. As per various reports, IDBI Bank privatisation may be completed this year. This may be one of the reasons of sale of stake in PIPDIC. Recently, PNB has also decided to sells its Entire Stake in ISARC for Rs.34 Crore.
The Pondicherry Industrial Promotion Development and Investment Corporation Limited (PIPDIC) was set up by the Government of Puducherry in 1974 with the twin objective of promoting the Industrial Development of Puducherry and providing financial assistance to entrepreneurs. It is a limited company with an authorised share capital of Rs.45 crores. PIPDIC provides various facilities such as Term loans, IT Park/Growth Centre/Industrial Estates.
| Particulars | Details |
|---|---|
| Date of Incorporation | 17th April 1974 |
| Registered Under | Companies Act, 1956 |
| Authorised Share Capital | ₹45 crores |
| Paid-up Capital | ₹40.40 crores |
| Shareholding | |
| Government of Puducherry | ₹31.86 crores |
| IDBI | ₹8.54 crores |
PIPDIC was setup with the objective of:
- Industrial Finance
- Development of Industrial Estates
- Aiding, counseling, protecting and promoting the interests of Industries in Puducherry
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In a filing with the regulatory authorities, IDBI Bank stated that it sold 8,54,000 equity shares, each with a face value of ₹100, in the company. The sale transaction is part of the bank’s strategy to divest its holdings in certain associate companies.
PIPDIC, which plays a key role in promoting industrial development in Puducherry, will now be fully owned by the Government of Puducherry. This change in ownership is expected to have implications for the corporation’s future governance and operations.
The ₹18.83 crore transaction reflects the bank’s ongoing efforts to streamline its investments and focus on core banking activities. The sale also highlights the growing trend of government acquisitions of strategic assets for regional development.
This divestment by IDBI Bank is an important development in the financial landscape, showing the bank’s commitment to improving its balance sheet and focusing on its primary banking business.
