Last month, the Department of Investment and Public Asset Management (DIPAM) extended the deadline for filing an Expression of Interest (EoI) for the privatization of IDBI Bank from December 16, 2022 to January 7, 2023. Also the deadline for filing physical copies the EoIs has been extended from December 23rd to January 14th.
The central government and LIC are jointly planning to sell a majority stake in IDBI Bank and had solicited offers from potential buyers in October. As part of the divestment plan, the center will divest a 30.48% stake in the lender, while Indian Life Insurance Corporation of India (LIC) will sell 30.24% of IDBI Bank. LIC and the government currently own 49.24% and 45.48% stakes respectively in IDBI Bank, while the remaining 5.29% stake is owned by retail investors. Following the share sale, the government and LIC’s stake in the bank will decrease to 34% from the current 94.71%.
According to the eligibility norms, private sector banks, foreign banks, non-bank financial companies and alternative investment funds (AIF) are eligible to participate in the strategic sale of IDBI Bank. The large industrial/corporate houses were excluded from the bidding process. A minimum net value of ₹22,500 crore is required as financial criteria for filing the EoI and for consideration in the RFP phase of the transaction.
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