The Department of Investment and Public Asset Management (DIPAM) on Wednesday extended the deadline to submit Expressions of Interest (EoI) for the strategic disinvestment of IDBI Bank to January 7 next year from December 16.
The last date for submitting physical copies of EoI by interested bidders who have done so electronically was extended from December 23 to January 14.
The finance ministry, on October 7, issued a preliminary information memorandum (PIM) inviting EoI for the strategic disinvestment of aggregate 60.72 per cent stake of IDBI Bank Limited by the central government and the Life Insurance Corporation of India along with transfer of management control.
Last week, DIPAM said that it would allow a consortium of foreign funds and investment companies to own over 51 per cent of IDBI Bank, clarifying the foreign ownership criteria were for new private banks and not applicable to existing ones.
Business Standard earlier reported that at least three private equity firms, one foreign bank, and a couple of alternative investment funds (AIFs) have sought clarity, apart from some home-grown firms, on the proposed deal and the EOI, indicating a strong interest in the proposed transaction.
The government expects to invite financial bids for IDBI in the current financial year ending March 31. However, the deal is expected to be closed by the middle of the next financial year, as it requires 9-10 months to conclude the transaction.
The government’s stake in IDBI will be sold in two-stages. In the first, those bidders that meet initial eligibility criteria shall be allowed in the ‘fit and proper’ assessment as prescribed by the RBI. Then they will have to get clearance from the Ministry of Home Affairs. After that, the qualified bidders would proceed to the second stage where financial bids would be sought.
During the current financial year, the Centre has rung up Rs 28,382.67 crore as disinvestment receipts against the FY23 target of Rs 65,000 crore.