This government bank is going to be sold!
A big change is going to happen in the indian banking sector, the government and life insurance corporation of india (LIC) together are preparing to sell their 61 percent stake in IDBI Bank. This process of privatization started from january 2023, when different investors showed interest in buying stake in the bank.
The process is being completed fast
The government is going to finalize the Share Purchase Agreement for the privatization of idbi bank this month. A senior official told CNBC-TV18 that the deal is expected to be completed in the first half of FY26, and financial bids will be placed soon. Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla confirmed in an interview to CNBC that the disinvestment process is on the right track. Although the exact timeline for privatisation is yet to be decided, the government has reiterated that the process is progressing as per plan.
The deal will see the sale of 30.48 per cent stake of the government and 30.24 per cent stake of LIC. Also, the transfer of management control of the bank will be included. DIPAM Secretary said that under the privatisation plan, lic will also sell its stake in IDBI Bank.
Concerns related to data room resolved
According to a report by business Today, the government has resolved all concerns related to the data room in the disinvestment process of IDBI Bank. This has cleared the way for the next phase of the deal to begin. A senior government official said, "The process of privatisation of idbi bank is progressing smoothly. All issues related to the data room have been resolved, and financial bids will be invited soon."
The due diligence process, in which potential bidders were given access to the bank's financial data, was a key step in determining valuation and bid amount. According to the report, the resolution of data room concerns indicates that the deal is moving towards its final stage. The official said, "There were no major hurdles, just some data room-related questions, which have now been resolved."
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