As many as seven firms, including JM Financial, Ernst and Young and Deloitte, have bid for managing the strategic sale of IDBI Bank.

These firms would make a virtual presentation before the department of investment and public asset management (Dipam), which is handling the sale process, on August 10, according to a notice by Dipam.

The firms that have bid for acting as transaction adviser are Deloitte Touche Tohmatsu India LLP, Ernst & Young LLP, ICICI Securities, JM Financial Ltd, KPMG, RBSA Capital Advisors LLP and SBI Capital Markets.

Dipam would appoint one transaction adviser for the strategic sale of IDBI Bank, in which the central government and LIC together own more than 94 per cent.

At present, LIC has management control with a 49.24 per cent stake, while the government holds 45.48 per cent in the bank. Non-promoter shareholding stands at 5.29 per cent.

The exact quantum of stake dilution would be decided later.

The government in June invited bids from professional consulting firms/investment bankers/merchant bankers/financial institutions/banks, for facilitating/assisting Dipam in the process of strategic disinvestment of IDBI Bank Ltd along with the transfer of management control, till the completion of the transaction. The last date for bid submission was July 13, which was later extended till July 22.

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; preparation of all documents such as the preliminary information memorandum (PIM), organise roadshows, suggest measures to fetch optimum value.