The government has invited a request for proposal to engage an asset valuer for the strategic disinvestment of IDBI Bank as it seeks to sell a majority stake in the lender.
The asset valuer will have to conduct a valuation of the lender’s assets, and provide assistance in the sale process of IDBI Bank. As of March 31, LIC holds 49.24 per cent, while the government has 45.48 per cent in IDBI Bank.
The preliminary information memorandum inviting expressions of interest was published on October 7, 2022. The government will sell 30.48 per cent and LIC will divest 30.24 per cent, aggregating to 60.72 per cent along with transfer of management control.
In January, the government received multiple expressions of interest from local and international bidders. The list of potential bidders included Emirates NDB, Sumitomo Mitsui Banking Corp, Prem Watsa’s Fairfax Holdings, Kotak Mahindra Bank, and Federal Bank.
The bids can be submitted by October 9. The technical bid will open in October and the shortlisted bidder will be invited for presentation. After that the financial bid will open.
