The government is eyeing the appointment of an asset valuer to assist in assessing IDBI Bank’s assets for its strategic disinvestment.
Together with LIC, the government intends to divest about 61% of its stake in IDBI Bank, and multiple expressions of interest (EOI) have been received for this purpose.
The government, in collaboration with the Reserve Bank, is currently evaluating the bids.
To progress to the second bidding stage, bidders must secure approvals from both the government and the RBI.
The Department of Investment and Public Asset Management (DIPAM) issued a request for proposal (RFP) on Monday, representing the government and LIC in this matter.
DIPAM specified that the chosen asset valuer must be a recognized entity registered with the Insolvency and Bankruptcy Board of India (IBBI). Bidding is open until October 9.
According to a government document cited in the report, the selected valuer will be responsible for assessing the bank’s assets and providing assistance during the sale process.
The window for this task will remain open until October 9, 2023, marking the initial phase of the bank’s sale process.
The government aims to receive financial bids for IDBI Bank by December, with the sale of its stake scheduled for the fourth quarter of the current fiscal year, i.e., by March 2024.
This process commenced in July and has now progressed with the appointment of an asset valuer.
Government and LIC Stake Details
The Government of India currently holds a 45.48% stake in IDBI Bank and is contemplating selling 30.48% of this stake.
Additionally, the Life Insurance Corporation of India (LIC) plans to divest 30.24% of its 49.24% stake.
Following the strategic disinvestment of IDBI Bank, the government and LIC will retain 15% and 19% stakes, respectively, in the bank, resulting in a combined total stake of 34%.
IDBI Bank’s liabilities encompass deposits, loans, and other financial obligations.
