In a presentation to the Department of Investment and Public Property Management (DIPAM), most qualified transaction advisors have asked for a period of 50 to 52 weeks to complete the various stages of IDBI’s privatization process.
Most of the commercial bankers who have submitted tenders for assistance in the process of policy stake sale in Life Insurance Corporation of India (LIC) controlled IDBI Bank have said that it will take a year to complete the process.
In a presentation to the Department of Investment and Public Property Management (DIPAM), most qualified transaction advisors have asked for a period of 50 to 52 weeks to complete the various stages of the IDBI privatization process.
Sources said that seven tenders were received to complete the strategic sale process, with Deloitte Touche Tohmatsu India LLP, Ernst & Young LLP, ICICI Securities Ltd.
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(ICICI Securities Limited), JM Financial Ltd. (JM Financial Limited), KPMG, RBSA Capital Advisors LLP and SBI Capital Markets Limited.
DIPAM had in June issued a tender on behalf of the government for the appointment of transaction advisors to complete the strategic sale of IDBI Bank. The last date for submission of tenders was July 13.
Government's stake in IDBI Bank is 45.48 percent
The Union Cabinet had in May this year approved in principle the strategic disinvestment of IDBI and the transfer of management control.
The central government and LIC together have a 94 per cent stake in the bank. LIC currently has management control with 49.24 per cent stake.
The government has a 45.48 per cent stake in the bank. The share of non-promoters is 5.29 per cent. Insurance company LIC had taken a controlling stake in IDBI Bank in January 2019.
Finance Minister Nirmala Sitharaman had said in the 2021-22 budget that the privatization process of IDBI Bank would be completed in the current financial year.
The government aims to raise Rs 1.75 lakh crore from the sale of minority shares and privatization in the current financial year.