The Centre will seemingly invite expression of curiosity for strategic disinvestment of IDBI Bank by end-July, a high authorities official stated on Friday.
The Department of Investment and Public Asset Management (Dipam), which held roadshows within the US in the previous few days, could have a couple of extra home roadshows earlier than finalising the contours of the sale, the official stated.
“We may need one more round of discussion with the Reserve Bank of India on IDBI strategic sale. Thereafter, we will decide what will be the consortium structure in case of joint bids and merger conditions (if the winning bidder wants to merge IDBI Bank with another existing lender),” the official stated.
Besides banks, monetary traders (aside from company homes) are the potential bidders for IDBI Bank.
Currently, LIC (49.24%) and the federal government (45.48%) collectively maintain 94.78% stake in IDBI Bank price about Rs 38,000 crore on the present market costs. Both the federal government and LIC plan to promote majority stake to a purchaser and handover the administration management.
To make the deal enticing, the federal government has approached the RBI to contemplate giving the potential purchaser of IDBI Bank some leeway on complying with the regulatory norms for personal banks, together with a time-bound discount in promoter holdings. It has additionally urged the Securities and Exchange Board of India (Sebi) to provide some flexibility to the strategic investor in IDBI Bank on the minimal public float norm for listed firms.
IDBI Bank shares ended at Rs 36.7 on Friday, down 2% from the earlier closing on the BSE.
Source: www.financialexpress.com”