Indian Government receives bids for majority stake in IDBI Bank
- ByStartupStory | January 7, 2023
The Indian government has received multiple bids for a majority stake in IDBI Bank (IDBI.NS), an official said in a tweet on Saturday, after the deadline for expressions of interest had passed earlier in the day, Reuters reported.
The government, which owns 45.48% of IDBI Bank, is looking to sell a 30.48% stake in the lender, while the state-owned Life Insurance Corporation of India (LIC) (LIFI.NS) will sell a 30.24% stake from its 49.24% stake in the bank.
“The transaction will now move to the second stage,” Tuhin Kanta Pandey, Secretary of India’s Department of Investment and Public Asset Management, said in a tweet.
On Monday, India’s finance ministry extended an exemption to the new buyer of IDBI Bank, allowing it to maintain a 25% minimum public shareholding in the lender.
Ahead of the deadline on Saturday, India’s market regulator allowed the government to reclassify its shareholding in IDBI Bank as “public” after the sale, making it easier for the new buyer to meet the minimum public shareholding requirement.
The government stated that the time limit for increasing the public shareholding in the lender would be specified in due course. A successful sale of IDBI Bank to a private buyer via competitive bidding would be the first of its kind in the Indian banking sector, paving the way for more such transactions in the coming years.
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