CORPORATE

Multiple bids received for strategic sale of government, LIC stakes in IDBI

The government has received multiple preliminary bids for strategic sale of about 61 per cent stake in IDBI Bank.     

“Multiple Expressions of Interest (EoIs) received for the strategic disinvestment of government and LIC stake in IDBI Bank,” Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey tweeted on Saturday.    

The transaction will now move to the second stage, in which potential bidders will conduct due diligence before putting financial bids.       

The government and LIC together are looking to sell 60.72 per cent in IDBI Bank and had invited bids from potential buyers last October. The last date for submitting the EoI or preliminary bids was set on December 16, which was later extended to January 7.     

Currently, the government and LIC hold 94.71 per cent in the lender. The successful bidder will have to make an open offer for acquisition of 5.28 per cent of public shareholding.     

Earlier, DIPAM had said that the potential buyers should have a minimum net worth of Rs 22,500 crore and must report a net profit in three out of the last five years to qualify to bid for the bank.        

In addition, a maximum of four members would be permitted in a consortium. Besides, the successful bidder will be required to mandatorily lock in at least 40 per cent of the equity capital for five years from the date of acquisition.  

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