Finmin extends deadline for submission of query for stake sale of IDBI Bank till November 10

The Finance Ministry had invited bids for the Preliminary Information Memorandum (PIM) IDBI Bank stake sale on October 7

The Central Government and Life Insurance Corporation of India (LIC) said that together they will sell 60.72 percent stake. IDBI Bank,

The deadlines for questioning and submission of bids by interested bidders were October 28 and December 16, respectively.

Department of Investment and Public Asset Management (Deepam) on Thursday issued a corrigendum to the PIM and extended the deadline for submission of questions till November 10.

The Center expects to receive financial bids for IDBI Bank by March and complete the process of privatization in the first half of the next financial year beginning April 2023.

Center will sell 30.48 per cent stake and Life Insurance Corporation of India (LIC) will sell 30.24 per cent stake. IDBI Bank, After the stake sale, the stake of the government and LIC combined will come down to 34 per cent, from 94.72 per cent at present.

LIC and the government currently hold 49.24 per cent and 45.48 per cent stake in IDBI Bank, respectively. The remaining 5.28 percent stake is with the public.

Apart from this, the buyer will also have to make an open offer to the minority shareholders of IDBI Bank to buy 5.28 per cent stake.

The interested bidders will have to clear the ‘Fit and Proper’ assessment of RBI to be able to access the data room of IDBI Bank for due diligence and will have to obtain security clearance from the Government/Ministry of Home Affairs at the EoI stage itself.

IDBI Bank shares closed on 45.20 on the BSE, up 0.33 per cent. At the current market price, 60.72 per cent share will get approx. 29,500 crore in the exchequer.