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Business News/ News / India/  IDBI Bank privatisation on track, says DIPAM Secretary
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IDBI Bank privatisation on track, says DIPAM Secretary

DIPAM Secretary denies reports of delays in IDBI Bank disinvestment, says process is on track

Shares of IDBI Bank are off the day's low, currently trading 3 percent higher at ₹45.75. Premium
Shares of IDBI Bank are off the day's low, currently trading 3 percent higher at 45.75.

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.

Debunking media reports which indicated a possibility of deferment of IDBI Bank disinvestment, DIPAM said the stake sale is in the post-EoI stage. "The transaction continues to be on track as per the defined process in post-EoI stage following receipts of multiple EoIs," DIPAM Secretary Tuhin Kanta Pandey tweeted.

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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Published: 17 Mar 2023, 01:39 PM IST
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