IDBI Bank is one of the oldest banks in India. The government and LIC together are searching for potential buyers to sell a 60.72 per cent stake in IDBI Bank. They have invited bids from potential buyers and businessmen.
On 7 January, the Union Government said that it has received multiple Expressions of Interest (EOI) for the strategic disinvestment of the stake held by it and Life Insurance Corporation of India (LIC) in IDBI Bank. The transaction is expected to now move to the second stage, according to a tweet from the Secretary, Department of Investment and Public Asset Management (DIPAM), Ministry of Finance. The LIC and the government together are looking to sell 60.72 per cent of IDBI Bank and had invited bids from potential buyers in October. The last date for submitting an Expression of Interest (EoI) or preliminary bids was set at December 16, which was later extended to January 7.
Two days ago, it was reported that the Securities and Exchange Board of India (SEBI) permitted government shareholding in IDBI Bank to be reclassified as public after stake sale. The government’s decision to permit foreign funds and investment entities registered outside of India to control more than 51 percent of IDBI Bank has further made the terms and conditions of the transaction more attractive. In order to reach its divestment goal of Rs 65,000 crore in FY23 (April–March), the Centre has so far raised roughly Rs 31,100 crore.
Share of IDBI Bank rebounded as much as 4.6% to Rs 57 in Friday’s trade on BSE after the Securities and Exchange Board of India (Sebi) gave consent to reclassify the government’s stake in the bank as ‘public’ after the strategic disinvestment.
The consent has been given on the condition that the government’s voting rights in the lender should not exceed 15% of the total voting rights of the bank, IDBI Bank said in a release.
