Shares of IDBI Bank leapt 8 per cent on Monday as its divestment process gathered pace with the government inviting bids for an asset valuer for the lender.
On the BSE, the scrip opened at the day’s low of 62.70 and hit an intra-day high of 65.45 towards the end of the trading session before settling at Rs 64.96, a gain of 8.03 per cent over its last close of Rs 60.13.
On Saturday, the Department of Investment & Public Asset Management (DIPAM), on behalf of the government and Life Insurance Corporation (LIC), had floated an RFP (request for proposal) to engage a “reputed asset valuer registered with the Insolvency & Bankruptcy Board of India (IBBI). The last date to submit bids is October 9.
DIPAM had said that the asset valuer would be required to value IDBI Bank’s investments (including investments in subsidiaries and associates and joint ventures and affiliates), loans and advances, fixed assets and other assets.
The bank’s liabilities include deposits, borrowings and other liabilities and provisions. The asset valuer will also have to work closely with the transaction adviser and legal adviser appointed by DIPAM.
“The contract (for asset valuer) shall be initially valid for a period of three years from the date of issue of the appointment letter and may be extended by one more year on existing terms and conditions,” the RFP said.
In May 2021, the Cabinet Committee on Economic Affairs had approved the strategic divestment of the Centre’s and LIC’s equity, along with the transfer of management control, in IDBI Bank.
