In NEW DELHI: On Friday, the government declared that the disinvestment of IDBI Bank is proceeding according to the established strategic sale mechanism.
The Department of Investment and Public Asset Management (DIPAM) refuted media reports that suggested there might be a potential of delaying the disinvestment of IDBI Bank and stated that the stake sale is currently in the post-EoI stage.
Following the submission of numerous EoIs, the transaction is still proceeding as planned according to the specified protocol, according to a tweet from DIPAM secretary Tuhin Kanta Pandey.
The government and the LIC received numerous Expressions of Interest (EoI) for the sale of the approximately 61 percent share in IDBI Bank that they are jointly selling.
DIPAM, which oversees the government’s share in state-owned businesses, issued an invitation for expressions of interest in selling a 30.48 percent stake in IDBI Bank and LIC’s 30.24 percent stake in the bank in October of last year.
Together, the government and LIC own 94.72 percent of IDBI Bank, which will decrease to 34 percent following the strategic sale.
The government and the RBI are currently reviewing the submitted bids. For the bidders to proceed to the second stage of the bidding process, which is due diligence and the subsequent invitation of financial bids, security clearance from the government and Fit and Proper clearance from the RBI would be required.
The investors who put in the EoI have already provided the necessary details to obtain a fit and appropriate clearance.
The transaction is anticipated to be completed in the second half of the following fiscal year beginning in April 2023.
Following the acquisition, the government would own 15% of IDBI Bank and LIC will own 19%, bringing their combined ownership to 34%.
