New Delhi: The Finance Ministry has extended the deadline for potential bidders to submit queries on IDBI Bank privatisation by 13 days till November 10. The ministry had floated the Preliminary Information Memorandum (PIM) on October 7, inviting bids for selling about 61 percent stake in IDBI Bank. The deadline for raising queries and submission of bids by interested bidders was October 28 and December 16, respectively.
The Department of Investment and Public Asset Management (DIPAM) issued a corrigendum to the PIM on Thursday and extended the deadline for submission of queries till November 10.
The government is expecting to get the financial bids for IDBI Bank privatisation by March and complete the process of privatisation in the first half of the next fiscal beginning April 2023.
After the stake sale, the government's and LIC's joint stake will come down to 34 percent, from the current 94.72 percent.
LIC and the government currently hold 49.24 percent and 45.48 percent stake, respectively, in IDBI Bank. The remaining 5.28 percent stake is with the public.
Of this, the government will sell 30.48 percent and LIC will sell 30.24 percent stake, aggregating to 60.72 percent of the equity share capital of IDBI Bank.
In addition, the buyer will also have to make an open offer to the minority shareholders of IDBI Bank for buying 5.28 percent stake.
Interested bidders would have to clear RBI's 'Fit & Proper' assessment and get security clearance from the government/home ministry in the EoI stage itself to be able to access IDBI Bank's data room for due diligence.
Shares of IDBI Bank closed at Rs 45.20, up 0.33 percent, on the BSE. At the current market price, 60.72 percent, the stake would fetch about Rs 29,500 crore to the exchequer.
(With PTI inputs)