Govt likely to extend deadline to mid-January for IDBI stake sale

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Govt likely to extend deadline to mid-January for IDBI stake sale

Sources told Business Today that the Indian government will likely extend the deadline to submit expressions of interest for its stake sale in IDBI Bank to mid-January from December 16 previously.

The government and LIC are looking to sell a 60.72% stake in IDBI Bank, and the government said last week it would allow a consortium of foreign funds and investment firms to own more than 51% of the lender.

The government is overwhelmed with interest and queries from perspective bidders.

Sources said that the Department of Investment and Public Asset Management DIPAM is likely to invite financial bids in early 2023.

Transaction advisors have received a number of requests for an extension of the deadline. The deadline was extended because foreign investment bankers wouldn't be working due to year-end holidays, an official told PTI.

On October 7th, the government invited bids for the EoI of IDBI Bank. Both the government and Life Insurance Corporation LIC have 94.71% of the shares in the lender.

In the last five years, the DIPAM said potential buyers should have a minimum net worth of Rs 22,500 crore and must report a net profit in three out of the last five years to qualify to bid for the bank. A maximum of four members would be allowed in a consortium.

The successful bidder would have to lock in at least 40% of the equity capital for five years from the date of acquisition.