The government on Friday invited bids from investors for privatising IDBI Bank by selling a total of 60.72% stake in the bank.
To DIVEST 60.72% stake
- Currently, LIC holds 49.24% stake in IDBI Bank, while the government holds 45.48% stake
- Of this, the government will sell 30.48% and LIC will sell 30.24% stake, aggregating to 60.72% of the equity share capital of IDBI Bank
- At the current market price, the 60.72% stake is valued at over Rs 27,800 crore
The Department of Investment and Public Asset Management (DIPAM), while inviting Expressions of Interest (EoI), said the potential investor should have a minimum net worth of Rs 22,500 crore, must report net profit in three out of the past five years to be eligible for bidding for IDBI Bank. Also, a maximum of four members would be allowed in a consortium.
The successful bidder would be required to mandatorily lock-in at least 40% of the equity capital for five years from the date of acquisition.
It further said the selection of the qualified interested parties and the amount of equity stake such entities would hold in IDBI Bank would be decided by the Reserve Bank and the bidder would have to clear the ‘Fit and Proper’ assessment done by the banking regulator.