Friday, June 24, 2022

Govt likely to invite preliminary bids for IDBI Bank privatisation next month: Official

The government is likely to invite preliminary bids for privatisation of IDBI Bank by July-end and is currently holding roadshows in the US for the sale, an official said

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New Delhi: The government is likely to invite preliminary bids for privatisation of IDBI Bank by July-end, an official said. The Department of Investment and Public Asset Management (DIPAM) is currently holding roadshows in the US for the sale. After a few more such investor meets, it will finalise the contours of the sale, the official added.

“We may need one more round of discussion with RBI on IDBI strategic sale. The expression of interest (EoI) may be invited by July-end,” the official said.

The government holds 45.48 percent stake in the bank, while LIC owns 49.24 percent.

The official said while the quantum of stake dilution of both the government and LIC is yet to be decided, the management control in IDBI Bank will be transferred in the strategic sale.

The Cabinet Committee on Economic Affairs had given in-principle approval for privatisation and transfer of management control in IDBI Bank in May last year.

Necessary amendments to the IDBI Bank Act have already been made through the Finance Act 2021, and transaction advisors have been appointed. The government is looking to raise Rs 65,000 crore through privatisation this financial year.

(With agency inputs)

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