IDBI Bank privatisation on track, says DIPAM Secretary
DIPAM Secretary denies reports of delays in IDBI Bank disinvestment, says process is on track
The government has said the disinvestment of IDBI Bank is on track as per the defined process. The Department of Investment and Public Asset Management (DIPAM), which manages government holding in state-owned enterprises, on Friday said that the media reports on speculations that the government might defer the $4 billion IDBI Bank divestment plan are misleading.
The IDBI Bank divestment is the government’s first privatization plan in India’s banking space. The government has been expecting a valuation of at least $4 billion for its 60.72% stake in IDBI Bank to be sold in the first half of FY24.
The government and the LIC are together selling about 61 per cent stake in IDBI Bank and had in January received multiple Expressions of Interest (EoIs) for the same.
The government and LIC together hold a 94.72 per cent stake in IDBI Bank, which will come down to 34 per cent after the strategic sale.
Currently, the government and the RBI are in the process of vetting the bids received.
Pursuant to the transaction, the government will own a 15 per cent stake and LIC 19 per cent in IDBI Bank, taking their total holding to 34 per cent.
Despite protests against privatization from the bank’s employees, the government has clarified that following the privatization, neither LIC nor the government will have any say on the bank’s functioning.
Shares of IDBI Bank are off the day's low, currently trading 3 percent higher at ₹45.75. The stock is down 17 percent so far this year.
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