IDBI Strategic Stake Sale: SMBC Bank, Oaktree Capital Mangement Submit EoIs

Sumitomo Mitsui Banking Corporation Group (SMBC Bank) of Japan and Oaktree Capital Management are among others who have submitted expressions of interest (EoIs) for the strategic stake sale in IDBI Bank, a media report stated, citing sources aware of the development.

On 7 January, Tuhin Kanta Pandey, Secretary, Department of Investment and Public Asset Management, tweeted that multiple expressions of interest have been received for the strategic disinvestment of the government and LIC’s stake in IDBI Bank.

“The transaction will now move to the second stage,” he had added while not disclosing any specific names from whom EoIs were received.

7 January was the last date for submitting EoIs, and the financial bids are expected to be invited by March end.

The government and LIC together are looking to sell 60.72 per cent in IDBI Bank and had invited bids from potential buyers last October.

JC Flowers, Emirates NBD Bank and Canada-based Fairfax group are also speculated to be interested in the strategic sale.

However, those submitting EoIs may not eventually submit firm bids.

The government has laid out certain conditions for the strategic sale, such as the potential investor having a minimum net worth of Rs 22,500 crore and a net profit in three out of the past five years.

A maximum of four members will be allowed in a consortium, and the successful bidder will be mandated to lock in at least 40 per cent of the equity capital for five years from the date of acquisition.

Shares of IDBI bank ended at Rs 54.55 apiece on the NSE on Friday.