IDBI Bank Privatisation: The bids for the privatization of IDBI Bank are likely to be called by March. At the same time, the sale process may end in the next financial year. Officials gave this information. The government had last week invited bids from potential investors to privatize the bank by selling a total stake of 60.72 per cent in IDBI Bank. For this, the last date for submission of bids or expression of interest (EOI) has been fixed as December 16, 2022.
What did the officials say?
Officials said it usually takes around six months to complete the process and receive the financial bids. We look forward to inviting financial bids for IDBI Bank by March. Given that this will be the first case of a strategic sale in the bank, a lot of questions are also expected to arise during the process. According to officials, the process of strategic sale of IDBI Bank is likely to end by September.
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These are the conditions to apply
The potential investor should have a minimum net worth of Rs 22,500 crore to apply. Also, to be eligible for bidding, the company needs to be in a net profit in three of the last five years. Life Insurance Corporation of India (LIC) currently holds 49.24 per cent stake in IDBI Bank with 529.41 crore shares while the central government holds 45.48 per cent stake with 488.99 crore shares. At the same time, after the stake sale, the combined stake of LIC and the government in the bank will come down from 94.72 per cent to 34 per cent.
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Government will sell 30.48 percent stake
The government will sell its 30.48 percent and LIC 30.24 percent stake in this bank. The holding of both together constitutes 60.72 per cent of the equity share capital of IDBI Bank. The Reserve Bank of India had classified IDBI Bank as a private sector bank with effect from January 21, 2019, after LIC acquired 51 per cent of the total paid-up equity share capital of the bank. Significantly, the government has set a target of raising Rs 65,000 crore from disinvestment in the financial year 2022-23, out of which it has already raised Rs 24,544 crore.