Govt to reissue bid for asset valuer for IDBI Bank sale

New Delhi: The Department of Investment and Public Asset Management (DIPAM) on Tuesday scrapped the bid for an asset valuer for the strategic disinvestment of IDBI Bank, issued in September, and plans to issue a new request for proposal (RFP), a move that may delay the bank's disinvestment initiative begun earlier this year.

On 1 September, DIPAM had invited request for proposal (RFP) to engage an asset valuer for strategic disinvestment of IDBI Bank.

The Centre and the Life Insurance Corp. of India (LIC) aim to divest 30.48% and 30.24% of their stakes, respectively, transferring management control to the strategic buyer as part of the sale of their combined 60.72% interest. After the sale, LIC will retain a 19% stake, and the government will have a 15% stake

In October last year, the Centre had called for expressions of interest from potential acquirers, leading to several proposals by January. 

The divestment process is structured in two stages: initial eligibility and a 'fit and proper' test by the Reserve Bank of India (RBI), followed by security clearance from the home ministry. In the second stage, after signing confidentiality agreements, qualified bidders will be invited to submit financial bids. 

Mint had earlier reported that the process is at the stage where the RBI is conducting the 'fit and proper' evaluation.