State-owned insurance major Life Insurance Corporation (LIC) is expected to recover its Rs 21,624 crore investment it had made in IDBI Bank as share prices are expected to rebound to 2019 levels by the time the lender is privatised, an official said.

The official said that since the commencement of the IDBI Bank privatisation process in May last year, the share price has jumped from Rs 35 a share to Rs 45 a piece currently. "We are expecting IDBI Bank scrip to move up further. The price is expected to move up closer to the price at which LIC had picked up stake in 2019," the official said.

The government and LIC together hold 94.72 percent in IDBI Bank. Of this, LIC's holding is 49.24 percent, while the government holds the rest 45.48 percent stake. Public shareholders hold 5.28 percent. LIC had bought a 51 percent stake in IDBI Bank in 2019 for Rs 21,624 crore at an average price of Rs 61 per share. Following a QIP issue in December 2020, the stake of LIC came down to 49 percent.

Besides, the government and LIC together infused Rs 9,300 crore in IDBI Bank to bring it out of RBI's Prompt Corrective Action (PCA) framework. "IDBI Bank privatisation will be a win-win for both the government and LIC," the official added.

Shares of IDBI Bank lasat closed at Rs 45, up 2.16 percent over previous close on the NSE.

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