IDBI Bank will be privatized or not? The government has told the truth. IDBI Bank will be privatized or not? The government has told the truth
The Department of Investment and Public Asset Management (DIPAM) said the sale of the bank’s shares has passed the expression of interest stage.
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IDBI Bank Investments: The central government on Friday said that the disinvestment process of IDBI Bank is going on with full strategy and there are no hurdles. Along with this, the government rejected all claims saying that IDBI’s disinvestment could be suspended. The Department of Investment and Public Asset Management (DIPAM) said the sale of the bank’s shares has passed the expression of interest stage.
The government will sell the entire stake
Deepam Secretary Tuhin Kant Pandey tweeted that after various expressions of interest, the transaction is now proceeding as per the prescribed procedure. The government had received several initial rounds of bids in January for a strategic sale of LIC and the nearly 61 percent stake it held in IDBI Bank. Bids were invited from potential buyers last October for the sale of a total of 60.72 per cent stake, including 30.48 per cent to the government and LIC’s 30.24 per cent stake in IDBI Bank. Currently, both the government and LIC hold 94.72 percent stake in the bank.
Read more: Big news: IDBI Bank will not be sold this year, government’s new plan for privatization
Emphasis on the $7.7 billion valuation
Earlier reports suggested the Center was pushing for a valuation of around 640 billion rupees ($7.7 billion) for IDBI Bank Ltd, in what could be the biggest public stake sale in a lender in decades. According to reports, JC Flowers, Carlyle Group, Canada-based Fairfax Group and Japanese bank Sumitomo Mitsui showed interest in IDBI Bank during a road show organized by the government to sell shares. There is no official confirmation of those who have submitted EOI.
Read more: Indians have not shown interest in IDBI Bank, the government trusts foreign firms
When will the process end?
The DIPAM secretary said this year that the disinvestment process of IDBI Bank will be completed in the financial year 2023-24. Pandey claims that there is no desire for management control after the disinvestment. He said, the reserve price will be determined after the financial tender. Pandey said the name of IDBI Bank and the number of bidders are yet to be disclosed.
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