iifl-logo

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp

sidebar image

IDBI Bank vaults as Govt invite bids for privatisation

10 Oct 2022 , 11:13 AM

The Government of India (Gol) has kicked off the process for strategic disinvestment of IDBI Bank with the transfer of management control. The government has issued a preliminary information memorandum to invite expressions of interest from prospective buyers. Gol, acting through Department of Investment and Public Asset Management (DIPAM), has engaged KPMG India as the legal advisors for providing advisory services and managing the transaction. The government is offering to sell 30.48% of its stake in the bank, and Life Insurance Corporation of India (LIC) will 30.24%, aggregating to 60.72% of IDBI Banks share capital, along with transfer of management control in the lender. Currently, GoI holds 45.48% and LIC holds 49.24% of the total equity share capital of IDBI Bank. The divestment process has been divided into two sequential stages. The successful bidder, whether a sole entity or a consortium, is required to hold and lock-in at least 40% of the paid up and voting equity share capital of IDBI Bank, at all times, for a period of 5 years from the date of acquisition of stake in IDBI Bank. The selection of the qualified interested parties and the amount of equity stake such entities would hold in IDBI Bank would be decided by the Reserve Bank of India and the bidder would have to clear the Fit and Proper assessment done by the banking regulator. Large industrial/corporate houses will not be permitted to participate in this bidding process for the transaction, either on its own or as a part of a consortium. The last date for submission of bids or Expression of Interest (EoI) by potential buyers is 16 December 2022. IDBI Bank is one of Indias one of the state own largest bank having more than 1,890 branches with 3,300 ATMs across the globe. IDBI Bank reported 25% jump in net profit to Rs 756 crore despite a 13% fall in total income to Rs 5,781 crore in Q1 FY23 over Q1 FY22. Powered by Capital Market – Live News

Related Tags

  • capital market
sidebar mobile

BLOGS AND PERSONAL FINANCE

Read More
Knowledge Center
Logo

Logo IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000

Logo IIFL Capital Services Support WhatsApp Number
+91 9892691696

Download The App Now

appapp
Loading...

Follow us on

facebooktwitterrssyoutubeinstagramlinkedintelegram

2025, IIFL Capital Services Ltd. All Rights Reserved

ATTENTION INVESTORS

RISK DISCLOSURE ON DERIVATIVES

Copyright © IIFL Capital Services Limited (Formerly known as IIFL Securities Ltd). All rights Reserved.

IIFL Capital Services Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
ARN NO : 47791 (AMFI Registered Mutual Fund Distributor)

ISO certification icon
We are ISO 27001:2013 Certified.

This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.