Investing.com | Editor Rachel Rajan
Published on 11/21/2023 14:25.
NEW DELHI – The Indian government has decided to cancel the ongoing tender for the selection of asset appraisers in the strategic sale of IDBI Bank, due to lack of participation of bidders. Officials today announced that the process will restart with a revised tender aimed at attracting more bidders.
The move follows an earlier statement from Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey, who admitted that despite efforts, the transaction would not be completed in the current fiscal year. The initial call for tenders, announced on September 1, has had its deadline extended from October 9 to 30 in the hope of receiving an adequate response.
The role of an asset valuation expert is critical in strategic sales, as it involves the valuation of both tangible and intangible assets. IDBI Bank’s significant assets include assets located in seven major cities, which contribute significantly to the depreciation value of its fixed assets. Intangible assets include items that are not shown on the balance sheet, such as trademarks and proprietary rights.
Following the strategic sale, the Government of India intends to retain a 15% stake in IDBI Bank, while Life Insurance Corporation of India (LIC) will continue to hold a 19% stake. The decision to stop the ongoing tender procedure was taken after receiving only one bid in the initial conditions.
DIPAM has now approved a review aimed at strengthening bidder engagement and plans to issue a new tender soon.
This article was created and translated with the help of AI and reviewed by an editor. For more information, see our T&C.
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