Most of the merchant bankers who had submitted bids to facilitate the strategic sale of LIC-controlled IDBI Bank has indicated a time-frame of one year to complete the elaborate process, sources said.

During a presentation before the department of investment and public asset management (Dipam) held recently, most of the eligible transaction advisers gave a time-frame of 50-52 weeks to undertake several stages of the privatisation process of IDBI Bank, market sources said.

However, the government intends to complete the transaction during the current fiscal itself. Thus, the merchant banker has to find a buyer in about 26 weeks or six months.

According to sources, as many as seven bids — Deloitte Touche Tohmatsu India LLP, Ernst and Young LLP, ICICI Securities Ltd, JM Financial Ltd, KPMG, RBSA Capital Advisors LLP and SBI Capital Markets Ltd — were received.

Dipam on behalf of the Government of India had floated a tender in June inviting bids from transaction advisers to facilitate and assist the strategic disinvestment of IDBI Bank.

The last date for submission of bids was July 13.

KPMG placed the lowest bid of Re 1, and was selected as the transaction adviser, market sources said, adding, the firm will assist the government in the sale for Re 1.

The cabinet had in May given in-principle approval to IDBI Bank’s strategic disinvestment along with transfer of management control.

The central government and LIC together own more than 94 per cent equity of IDBI Bank. At present, LIC has management control with a 49.24 per cent stake, while the government holds 45.48 per cent. Non-promoter shareholding stands at 5.29 per cent.

The transaction adviser would be required to advise and assist the government on the modalities of disinvestment and the timing; recommend the need for other intermediaries required for the process of sale/disinvestment and also help in the identification and selection of the same with proper terms of reference.

The transaction adviser will assist in the preparation of all documents such as preliminary information memorandum, organise roadshows to generate interest among the prospective buyers and suggest measures to fetch optimum value.