The government on March 17, 2023 said that the disinvestment of IDBI Bank is on track as per the defined strategic sale process.

The government on Friday said the disinvestment of IDBI Bank under the defined strategic sale process is on track.

The Department of Investment and Public Asset Management (DIPAM) has dismissed media reports indicating the possibility of postponing the disinvestment of IDBI Bank, saying the stake sale is at a post-EoI stage.

DIPAM Secretary Tuhin Kanta Pandey tweeted, “After receiving multiple EOIs, the transaction is in progress as per the process defined in the post EOI phase.”

The government and LIC together are selling around 61% stake in IDBI Bank and several Expressions of Interest (EoIs) were received for the same in January.

DIPAM, which manages government holding in state-owned enterprises, had in October last year invited EoIs to sell 30.48% stake in IDBI Bank along with LIC’s 30.24% stake in the bank.

The government and LIC jointly hold 94.72% stake in IDBI Bank, which will come down to 34% after the strategic sale.

Presently, the Government and RBI are in the process of vetting the bids received. The bidders will be required to have security clearance from the Government and suitable and proper approval from the Reserve Bank of India to proceed to the second stage of the bidding process which is due diligence and subsequent invitation of financial bids.

The investors who have submitted the EOI have already submitted the information required to secure the fit and proper and security clearances.

Officials expect the transaction to be closed in the second half of the next financial year beginning April 2023.

As per the transaction, the government will hold 15% stake in IDBI Bank and LIC will hold 19%, taking their total stake to 34%.