IDBI Bank Privatisation On Track: DIPAM
DIPAM, which manages government holding in state-owned enterprises, in October last year invited EoIs for selling a 30.48% stake in IDBI Bank, along with LIC's 30.24% stake in the bank.
The government on Friday said the disinvestment of IDBI Bank Ltd. is on track as per the defined strategic sale process.
After debunking media reports that indicated the possibility of deferring the disinvestment of IDBI Bank, the Department of Investment and Public Asset Management said the stake sale is in the post-expression of interest stage.
"The transaction continues to be on track as per the defined process in the post-EoI stage following receipt of multiple EoIs," DIPAM Secretary Tuhin Kanta Pandey tweeted.
The government and the Life Insurance Corporation of India are together selling about 61% of the stake in IDBI Bank and had received multiple EoIs for the same in January.
DIPAM, which manages government holding in state-owned enterprises, in October last year invited EoIs for selling a 30.48% stake in IDBI Bank, along with LIC's 30.24% stake in the bank.
The government and LIC together hold a 94.72% stake in IDBI Bank, which will come down to 34% after the strategic sale.
Currently, the government and the Reserve Bank of India are in the process of vetting the bids received. Security clearance from the government and 'Fit and Proper' clearance from the RBI would be necessary for the bidders to move to the second stage of the bidding process, which is due diligence and the subsequent invitation of financial bids.
The investors who have put in an EoI have already submitted the required information to secure fit and proper security clearance.
Officials expect the transaction to be completed in the second half of the next fiscal beginning April 2023.
Pursuant to the transaction, the government will own a 15% stake and LIC will own 19% of IDBI Bank, bringing their total holding to 34%.