The government is working towards investing financial bids for strategic stake sale in idbi bank by December with interested Buyers having completed due diligance and data room Norms, Arunish Chawla, SECRETARY. Department of Investment and Public Asset Management (Dipam) Said on Friday. The successful bidder will be announted by March 2026, He added.
The long-pending stake sale process of idbi bank will be closely eyed as the government kickstarts the disinvest
“Due diligance and data room protocols have been completed for all the interested parties. This financial year, “Chawla said, adding that on the financial bids come in and a successful bidder is selected, it will be sent to the reserve bank of india (RBI) for final” fit and prone “clearanc.
The prospective Buyer of IDBI Bank has already been granted security by the ministry of home affair (MH) and cleared fit and propr Event evaluation by the RBI. Along with the life insurance corporation (LIC), The government had in October 2022, invited expression of interest (EOI) from inventors for privatising IDBI bank by selling a total of 60.72 per cent. This inscludes a 30.48 per cent stake of the government of India and 30.24 per cent of lic. In January 2023, it may be received multiple eois for idbi bank. On Friday, Shares of Idbi Bank Ended At Rs 90.17 on Friday, Down 2.68 per cent from the previous close on the bse.
What are centre’s plans for lic division?
For the other major pending disinvestment proposal for lic which also has been in the pipeline, Chawla said the government has appointed Merchant Bankrs and Legal Advisors for minority steak in lic, and oteric sical. Financial Institutions.
“As far as lic is concerned, we have completed the RFP (Request for proposal) Process. The process for appointment of merchant banks and legal advisors has been completed,” Chawla Said.
Earllier this year, in february, dipam had invited bids from merchant bankers and legal realms to association in the government in dividing its stake in public sector banks and Listed Financial Institutions. As per the two rfps (Request for proposal) floated by Dipam, The Merchant Bank and Legal Advisors would be empanelled for a period of three years, which could be extended by one more year. “Individual Transaction Can Happen AnyTime Over the Next 3 Years,” Chawla Said.
Story Continues Below this ad
The Government Currently Holds 96.5 Per Cent Stake in Lic. It had sold 3.5 per cent through an initial public offering in May 2022 at a price band of Rs 902-949 a share that yielded around Rs 21,000 crore. The Government Needs to Offload Another 6.5 Per Cent Stake in the Public Sector Life Insurer to meet the mandated 10 per cent public shareholding requirement by May 16, 2027.
Banks and Financial Institutions Need to meet the minimum 25 per cent public shareholding Norm as mandated by the market regulator sebi. Five psu banks are yet to meet the minimum public Shareholding Norm. The government has set august 1, 2026 as the deadline for Such non -compliant entities to Reduce Government Holding and meet Public Float Norms.
© The Indian Express PVT LTD