IDBI Stake Sale

The government on Wednesday issued a fresh RFP for the appointment of asset valuer for strategic sale-bound IDBI Bank. The last date for submitting bids by asset valuer is January 5, the Department of Investment and Public Asset Management (DIPAM) said while floating the Request For Proposal (RFP). The DIPAM had last week cancelled the bid process for the appointment of an asset valuer for IDBI Bank on low bidder interest. A fresh RFP would be invited soon after a review of some of the bid criteria to enable better interest from bidders, an official had said. The asset valuer has to be registered either with the Insolvency and Bankruptcy Board of India, or Sebi, or the Institute of Chartered Accountants of India (ICAI). The bidder is required to have an annual turnover of over Rs 1 crore in the previous three fiscal years.

The government on Wednesday extended the deadline to submit preliminary bids for the IDBI Bank privatisation till January 7. The government and LIC 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 December 16. Following that transaction advisors received requests for an extension of the deadline. In a notice, the Department of Investment and Public Asset Management (DIPAM) said the last date for submission of EoI is January 7, 2023, instead of December 16, 2022. Also, the last date for submission of physical copies of the EoIs has been extended to January 14, from December 23. The government and the Life Insurance Corporation (LIC) hold 94.71 per cent of IDBI Bank and are looking to offload 60.72 per cent in the state-owned bank. The successful bidder will have to make an open offer of acquisition of 5.28 per cent of the public ...

India is pushing for a valuation of around 640 billion rupees ($7.7 billion) for state-owned IDBI Bank Ltd. in what could be the biggest sale of the government's stake in a lender in decades

Govt has reportedly asked SEBI if it can classify the govt, LIC's remaining stake of about 34% after the sale as public float, which will help the new buyer meet the minimum public shareholding norm

In a first, the government has made it mandatory for interested buyers of IDBI Bank to provide details for security clearance from the Ministry of Home Affairs (MHA) in the first stage of the bidding process. So far, in all instances of CPSE privatisation, the government would seek details regarding security clearance of the bidders at the second stage of the bidding process. This meant that bidders who qualified in the first or the Expression of Interest (EoI) round, were required to seek security clearance from the government while placing their financial bids. Inviting Expression of Interest (EoI) from bidders for buying the government and LIC's 60.72 per cent in IDBI Bank, the Department of Investment and Public Asset Management (DIPAM) said interested parties (IPs) who clear the 'Fit & Proper' assessment by RBI and the security clearance by the government/MHA shall be notified as the Qualified Interested Parties (QIPs). Only the QIPs will get access to the data room of IDBI ..

The Centre has reached out to Sebi seeking a relaxation period of two years in the minimum public shareholding norms for IDBI Bank after its privatisation

The government is likely to invite preliminary bids for selling a stake in IDBI Bank next month and the discussions with the RBI are at the final stages, an official said. "There are still some pending issues that need to be discussed with the Reserve Bank of India and Securities and Exchange Board of India. We are hopeful of issuing the EoI by September," the official told PTI. The official, however, did not divulge details of regulatory issues on which the government is holding discussions with banking and equity market regulators RBI and Sebi, respectively. "Since IDBI Bank would be first of its kind with regard to privatisation in the banking sector, we are expecting a lot of investor queries to come in once the Expression of Interest (EoI) is floated. The stake sale is unlikely to conclude this fiscal," the official added. The Cabinet Committee on Economic Affairs had given in-principle approval for strategic disinvestment and transfer of management control in IDBI Bank in May

India is considering selling at least 51% of the $5 billion bank, people familiar with the matter have said

Audit report may form the basis of valuations in impending disinvestment by the government

The hurdle might push the government's plan to sell its entire stake in the lender to the next financial year

IDBI Bank will sell up to 49 per cent stake in its subsidiaries IDBI Capital Markets & Securities Ltd (ICMS) and IDBI Intech Ltd (IIL). The board of directors of IDBI Bank has given in-principle approval to divest or dilute IDBI Bank's stake in its subsidiaries namely IDBI Capital Markets & Securities Ltd (ICMS) and IDBI Intech Limited (IIL) to the extent of 49 per cent to the prospective investors, the private sector lender said in a regulatory filing. IDBI Bank said it will retain controlling stake in the subsidiaries with itself. Shares of IDBI Bank closed at Rs 33.50 on the BSE, down by 1.90 per cent from the previous close.

n January, LIC completed the process of picking up a controlling 51 per cent stake in the nearly crippled IDBI Bank

IDBI Bank Monday said insurance behemoth LIC has completed acquisition of 51 per cent controlling stake in the bank, making it the lender's majority shareholder. "The deal, conceptualised in June 2018, is envisaged as a win-win situation for both IDBI Bank and LIC with an opportunity to create enormous value for shareholders, customers & employees of both entities through mutual synergies," IDBI Bank said in a BSE filing. In August last year, the Cabinet approved the acquisition of controlling stake by Life Insurance Corporation (LIC) as a promoter in the bank through a combination of preferential allotment and open offer of equity. LIC had been looking to enter the banking space by acquiring a majority stake in IDBI Bank, as the deal is expected to provide business synergies despite the lender's stressed balance sheet. The bank had reported a net loss of Rs 3,602.49 crore during the September quarter of 2018-19. Its gross non-performing assets hit 31.78 per cent (Rs 60,875.49 ...

The permissible limit for insurance companies to hold stake in any listed entity is 15 per cent at present

Post the transaction, IDBI Bank would become a subsidiary of LIC, which will have 51 per cent stake in it

Employees of IDBI across the country are planning to go on a strike on August 30, 2018 to put pressure on the Government not to privatise IDBI Bank. All India Bank Employees will be supporting IDBI Bank employees through agitations and protests and it will be followed by a strike, threatened All India Bank Employees Association.The decision was taken at a meeting of the representatives of All India Bank Employees Association (AIBEA), All India Bank Officers' Association, All India IDB Employees' Association, All India IDBI Officers' Association at Chennai today.The Associations want the Government to stop privatisation of IDBI Bank, Government should keep its assurance to the Parliament and implement Clause 4 of the Articles of Association of IDBI Bank by maintaining minimum 51 per cent equity in the Bank and take stringent measures to recover bad loans.C H Venkatachalam, general secretary, AIBEA and members of other Associations have said that the bad loans in IDBI Bank has gone upto

In unfortunate eventuality of govt failing to review its stand in the matter, officers, employees of IDBI Bank will be left with no other option but to take recourse to organisational forms of action

Last month, IDBI Bank's board also approved sale of 1.5 per cent stake in the leading bourse National Stock Exchange (NSE).