IDBI disinvestment: Bidding to start in the first half of next financial year, says DIPAM Secretary

IDBI disinvestment: The much-anticipated stake sale of IDBI Bank may likely be completed by the first half of the next financial year, said DIPAM Secretary Tuhin Kanta Pandey. 

There has been a good response from both foreign and domestic investors for expressions of interest (EoI) for a buyout of its 60.7% stake in IDBI Bank, he said in an exclusive interview with Zee Business. 

He stated that the bidding process for IDBI disinvestment process will kick off in the first half of the next financial year. “The process will be complete by the first half of the next financial year (FY 2024) and bidding will start in the first half of the next financial year,” added Tuhin Kanta Pandey.

#IDBI बैंक विनिवेश के लिए बोलियां कई मिली

सरकार और #LIC के हिस्से के लिए कई EoI

देखिए विनिवेश पर DIPAM सचिव, तुहिन कांत पांडेय से तरुण शर्मा की खास बातचीत

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Talking about the shares held by the government and LIC in IDBI Bank, the DIPAM secretary stated, “IDBI faced some issues in terms of NPAs, so some capital needed to be infused as per the regulations of banking. Thus, the percentage of shares held by the government and LIC increased. But for the rest of the shares, we wanted the bidders to have clarity and have addressed the pre-bid queries clearly.”

Recently, the Life Insurance Corporation of India (LIC) applied to the Securities and Exchange Board of India (SEBI) demanding a public shareholder tag in IDBI Bank and also requested the removal of the 'promoter' tag in IDBI bank.  Although, as per market experts and other sources from the government, it is unlikely that Sebi would accept the demand of LIC as LIC holds 49.24 per cent stake in IDBI, and with this shareholding, they cannot be considered as a public shareholder.

Talking about the shares of the government and the role of government and LIC in the managerial decisions, the DIPAM secretary asserted, “We reached out to Sebi and as per our proposal, Sebi accepted and notified accordingly. It may happen that we won’t be able to participate in the management.”

With the Union Budget 2023 around the corner, all eyes are now on the disinvestment target which was set at Rs 65,000 crore during the last budget. “We try to ensure that there is no adverse impact of the disinvestment process on the minority shareholders. We follow a calibrated disinvestment approach to balance the earnings of the government and the investments of the other shareholders,” added DIPAM secretary.