IDBI Bank Sale: Financial Bids To Be Invited By March, Says Top Government Official
IDBI Bank's disinvestment is moving forward with bidders expected to assess the bank's virtual data room and review the draft share purchase agreement by November.
The disinvestment of IDBI Bank is gaining pace, as financial bids for the bank could be called by March, a top government official told NDTV Profit.
The potential bidders would be given access to the banks’ virtual data room by November for close assessment of the business and get clarity on the issues, if needed, the official said. The bidders to also review the draft share purchase agreement (SPA), which outlined a series of precedent-defining requirements, including regulatory approvals, that government and LIC would need to fulfill.
Following this, the government will call for financial bids.
The government invited expression of interest for IDBI Bank and offered to sell a total of 60.72% stake in the bank, including 30.48% from the government and 30.24% from LIC, along with the transfer of management control in the bank. The government has received the EoI from multiple bidders in January.
The bidders had to go through the RBI’s fit and proper clearance which had come in July 2024. “The fit and proper clearance bound to take time being a critical sector,” the official said.
The deal however is expected to be sealed next fiscal year as even after getting financial bids, the process would six-to-eight months more, the official added.
