IDBI Bank strategic sale likely to conclude by October

The share purchase agreement has been discussed, and bidders will soon be invited to submit financial bids

New Delhi: New Delhi: The strategic sale of IDBI Bank is likely to be concluded by October, and the government has discussed the share purchase agreement that will be provided to bidders submitting financial bids, an official said.

The privatisation of IDBI Bank has been in progress for nearly three years. In October 2022, the government, along with LIC, invited Expressions of Interest (EoIs) from investors for privatising IDBI Bank by selling a total 60.72 per cent stake.

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This includes a 30.48 per cent stake held by the Government of India and 30.24 per cent by LIC. The official stated that the due diligence process for the data room is currently underway, and the government will soon invite financial bids.

“The strategic stake sale in IDBI Bank is likely to be concluded by October,” the official said. Following the invitation for EoIs in October 2022, DIPAM received multiple expressions of interest for IDBI Bank in January 2023.

The prospective buyer has already been granted security clearance by the Ministry of Home Affairs (MHA) and has cleared the ‘fit and proper’ evaluation by the Reserve Bank of India (RBI).

Shares of IDBI Bank were trading at ₹99.50 apiece, down 0.40 per cent from the previous close on the BSE.