The Financial Express
With the processing of the expression of interests (EoIs) received for IDBI Bank moving on to the next stage, department of investment and public asset management (DIPAM) secretary Tuhin Kanta Pandey said financial bids for the bank are expected by September.
The transaction adviser KPMG India is understood have handed over relevant documents submitted by the bidders at EoI stage to the Reserve Bank of India (RBI) and the Union home ministry. RBI will undertake the “fit-and-proper assessment” of the bidders, while the ministry will verify their antecedents for security purposes before financial bids are called.
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“We expect all these processes to be over in time… we will try to bring in financial bids by September,” Pandey told FE.
The transaction continues to be on track as per the defined process in post-EoI stage following receipts of multiple EoIs, Pandey had tweeted recently responding to speculations about the possibility of deferment of the proposed IDBI Bank disinvestment in FY24.
The bank’s share closed at Rs 45.01 on the BSE on Friday, up 0.02% from the previous closing price.
Access to the data room of the bank would be opened to the bidders who remain qualified after the vetting by the RBI and the home ministry.
On January 7, the Centre received multiple EoIs from domestic and foreign investors for the 60.72% stake in IDBI Bank, which will go to the successful bidder along with management control. The offer comprises 30.48% from the government and 30.24% from LIC, the current promoter.
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The IDBI Bank deal was sweetened for investors as the government, markets regulator Sebi and RBI have extended necessary regulatory forbearance.
Foreign banks, funds and investment vehicles incorporated outside India were allowed to bid for IDBI Bank.
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