IDBI Bank Privatization: Asset Valuer Appointed, Share Purchase Pact Under Review

New Delhi, Apr 9 (PTI) DIPAM Secretary Arunish Chawla on Wednesday said the government has appointed asset valuers for valuation of IDBI Bank and is also deliberating on share purchase agreement to be signed with prospective buyer.

The privatisation of IDBI Bank has been in process for over two and a half years. In October, 2022, when the government, together with LIC, had invited EoI from investors for privatising IDBI Bank by selling a total of 60.72 per cent stake. This includes a 30.48 per cent stake of the Government of India and 30.24 per cent of LIC.

Talking to reporters, Chawla said the Department of Investment and Public Asset Management (DIPAM) is "moving ahead" with IDBI Bank strategic sale as per government decision.

"We have established a virtual data room. The facility to answer query is going on well and we have appointed an asset valuer. We are also deliberating on shareholder agreement," Chawla said.

"The strategic sale of IDBI Bank should conclude in another 6-7 months," an official said, adding financial bids would be invited soon.

Once the asset valuer and transaction advisor submit their reports on IDBI Bank valuation, the reserve price or the floor price for the sale would be set.

Thereafter, the financial bids from interested buyers would be opened and the winner would be announced.

Pursuant to inviting EoIs in October 2022, the DIPAM, in January 2023, had received multiple Expressions of Interest (EoI) for IDBI Bank.

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

Shares of IDBI Bank closed at Rs 78.70, up 2.27 per cent from previous close on BSE.