The bidders interested in the IDBI Bank disinvestment process are expected to gain access to the data room and draft purchase share agreement within a fortnight, officials have told Business Today TV.
“The process was slightly delayed, but we are progressing now,” an official said.
Earlier, the Department of Investment and Public Asset Management (DIPAM) had previously submitted the names of potential bidders for RBI evaluation. Officials did not disclose the exact date of approval but noted that clearance was obtained sometime mid-August.
Sources added that the financial bids may take longer than anticipated, potentially coming in by February or March next year, as the government aims to proceed in line with market conditions. The goal remains to complete the disinvestment process within this fiscal year.
Around 61 per cent stake holding, which comprises of 30.48 per cent stake of the Government of India and 30.24 per cent of LIC. The process of the lender’s privatisation had begun in January 2023 when the centre had invited interest from companies. It is now expected to be completed this fiscal.
IDBI Bank’s disinvestment has encountered multiple delays since the first Preliminary Information Memorandum (PIM) was issued on October 7, 2022, seeking Expressions of Interest. A second attempt to appoint an asset valuer was made in November last year after the initial effort was scrapped due to poor response.
The Union Budget 2024-25 has estimated raising Rs 50,000 crore from “miscellaneous capital receipts”, which will be a mix of asset monetisation and disinvestment, DIPAM had but indicated that the target may be reviewed based on the strategy and actual transactions that take place.
