Friday, March 24, 2023

IDBI Bank privatization on track: DIPAM – Usky News

New Delhi: The government on Friday said that the disinvestment of IDBI Bank under the defined strategic sale process is on track.
Rejecting media reports indicating the possibility of postponing the disinvestment of IDBI Bank, the Department of Investment and Public Asset Management (deepam) said the stake sale is at a post-EoI stage.
DIPAM Secretary Tuhin Kanta Pandey tweeted, “After receiving multiple EOIs, the transaction is in progress as per the process defined in the post EOI phase.”
The government and LIC together are selling about 61 per cent stake in IDBI Bank and received several expressions of interest (EoIs) for the same in January.
DIPAM, which manages the government’s stake in state-owned enterprises, had in October last year invited EoIs to sell 30.48 per cent stake in IDBI Bank along with LIC’s 30.24 per cent stake in the bank.
The government and LIC jointly hold 94.72 per cent stake in IDBI Bank, which will come down to 34 per cent after the strategic sale.
Currently, the government and reserve Bank of India The bids received are in the process of being scrutinised. The bidders will be required to have security clearance from the Government and suitable and proper approval from the Reserve Bank of India to proceed to the second stage of the bidding process which is due diligence and subsequent invitation of financial bids.
The investors who have submitted the EOI have already submitted the necessary information for safe fit and proper and security clearance.
Officials expect the transaction to be closed in the second half of the next financial year beginning April 2023.
As per the transaction, the government will hold 15 per cent stake in IDBI Bank and LIC will hold 19 per cent, taking their total stake to 34 per cent.


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