The government on Friday debunked media reports indicating a possibility of deferment of IDBI Bank disinvestment. The Department of Investment and Public Asset Management (DIPAM) said that the stake sale is on the right track.

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The government and the Life Insurance Corporation of India are together selling about 61 per cent stake in IDBI Bank. DIPAM in October last year invited EoIs for selling a 30.48 per cent stake in IDBI Bank, along with LIC's 30.24 per cent stake in the bank. In January, the government said that it has received multiple Expressions of Interest (EoIs).

“Reports appearing in a section of the media indicating the possibility of deferment of IDBI Bank disinvestment are misleading, speculative and baseless. The transaction continues to be on track as per the defined process in post-EoI stage following receipts of multiple EoIs,” DIPAM Secretary Tuhin Kanta Pandey tweeted.

The clarification was issued by the department after a news portal reported that the government may defer IDBI Bank disinvestment plan amid market volatility. 
Earlier, Tuhin Kanta Pandey during an interaction with Zee Business said that the divestment process of IDBI Bank will be completed in the fiscal year 2023-24.

Describing the process as 'unique', Pandey stressed on the fact that there is no intention to have management control post divestment. Reserve price fixation will take place after financial bids are placed. 

As of now, LIC is the promoter of IDBI Bank with management control and the government is the co-promoter. In 2019, LIC injected Rs 21,624 crore into the bank.