The Department of Investment and Public Asset Management (DIPAM) said that the sale of stake in the bank has gone beyond the phase of expression of interest.
Image Credit source: Representational Image
IDBI Bank Disinvestment: The Central Government said on Friday that the process of disinvestment of IDBI Bank is going on with full strategy and there is no hindrance in it. With this, the government rejected all the claims that it was being said that the disinvestment of IDBI could be postponed. The Department of Investment and Public Asset Management (DIPAM) said that the sale of stake in the bank has gone beyond the phase of expression of interest.
Government will sell entire stake
Deepam Secretary Tuhin Kant Pandey tweeted that after receiving various expressions of interest, the transaction is now proceeding as per the prescribed procedure. The government had received several initial rounds of bids in January for the strategic sale of about 61 per cent stake held by it and LIC in IDBI Bank. Bids were invited from potential buyers in October last for the sale of a total of 60.72 per cent stake, including 30.48 per cent government and LIC’s 30.24 per cent stake in IDBI Bank. At present, both the government and LIC together hold 94.72 percent stake in this bank.
Read also: Big news: IDBI Bank will not be sold this year, government’s new plan on privatization
Emphasis on valuation of $ 7.7 billion
Earlier reports suggested that the Center is pushing for a valuation of around 640 billion rupees ($7.7 billion) for IDBI Bank Ltd, which could be the biggest government stake sale in a lender in decades. According to the report, JC Flowers, Carlyle Group, Canada-based Fairfax Group and Japanese bank Sumitomo Mitsui had shown interest in IDBI Bank during the roadshow organized by the government for stake sale. There is no official confirmation of those who submitted the EOI.
Read also: Indians did not show interest in IDBI Bank, government trusting foreign companies
When will the process be completed
The DIPAM secretary had said this year that the disinvestment process of IDBI Bank would be completed in the financial year 2023-24. Pandey claimed that there is no intention of management control post disinvestment. He said that the reserve price will be decided after the financial bidding. Pandey said that the name of IDBI Bank and the number of bidders are yet to be revealed.