Advertisement

  • News
  • Columns
  • Interviews
  • BW Communities
  • Events
  • BW TV
  • Subscribe to Print
BW Businessworld

‘IDBI To Stay As Indian Private Sector Bank Post Strategic Sale’

On October 7, the government invited bids for privatising IDBI Bank

Photo Credit :

1647862510_9PBlDV_IDBI.jpg

IDBI Bank will continue to operate as an ‘Indian private sector bank’ after its strategic sale, the Finance Ministry said on Sunday.

The government’s residual 15 per cent stake in IDBI Bank post the strategic sale will be considered as ‘public shareholding’. “A reasonable period will be given to the potential buyer to comply with minimum public shareholding (MPS) norm,” these clarifications were shared by Department of Investment and Public Asset Management (DIPAM), under the finance ministry, to potential investors’ pre-EoI queries.

DIPAM said if needed the winning bidder can undertake a corporate restructuring of the subsidiaries of the bank and there will not be any restrictions. Certain asset sizes and timing thresholds related to asset stripping would be provided to give flexibility in operations to the successful bidder, it said.

On October 7, the government invited bids for privatising IDBI Bank. The government along with Life Insurance Corporation of India (LIC), which hold 94.72 per cent stake in IDBI Bank, will sell a total of 60.72 per cent stake in the financial institution.  

The successful bidder would be required to make an open offer for the acquisition of 5.28 per cent public shareholding. Pursuant to the transaction, the government will own a 15 per cent stake, while LIC 19 per cent, taking their total holding to 34 per cent.

The last day for submitting expression of Interest (EoI) or preliminary bids is December 16.