NEW DELHI: The government is planning to complete the divestment process for IDBI Bank before January 2022. “The divestment process of IDBI Bank is going as per the timeline. We intend to close the deal before January.
Once the transaction advisor is appointed, EoI should be done by September,” a senior finance ministry official told this publication. The government on Tuesday also invited proposals to appoint legal and transaction advisers for its strategic disinvestment.
The transaction advisor will be required to undertake tasks related to all aspects of the proposed disinvestment, culminating in the successful completion of the transaction, while the legal adviser will review and advise on all legal contracts and regulations.
The deadline for the interested parties to submit bids is July 13, the Department of Investment and Public Asset Management (DIPAM) said. The finance minister, during the budget speech this year, had announced the divestment of IDBI Bank in order to meet the government’s ambitious target of Rs 1.75 lakh crore from disinvestment proceeds for this fiscal year.
The proposal had been approved by the Cabinet Committee on Economic Affairs in May. The Union government and LIC own 45.48 per cent and 49.24 per cent in the bank respectively. While the finance ministry has not yet finalized the quantum of the stake to be sold, sources claim that the divestment will not be done in one go. “Initially we intend to sell 26-30 per cent stake and then, we will offload the rest. However, this can be adjusted as per market conditions,” the official clarified.