IDBI Bank Strategic Disinvestment News| RFP to appoint Asset Valuer by DIPAM

Last Updated on September 3, 2023 by Brajesh

IDBI Bank Strategic Disinvestment | RFP to appoint Asset Valuer

Government plan to offload its stake from IDBI Bank has moved to next leg. DIPAM, Department of Investment & Public Asset Management, invites for Request For Proposal (RFP) to appoint an Asset Valuer for strategic disinvestment of UDBI Bank.

As per the report financial due diligence of the bidder has already started from July 2023 for bidder who are interested to buy majority stake in IDBI Bank Ltd.

IDBI Bank Strategic Disinvestment | Asset Valuer

DIPAM will appoint Asset valuer on behalf of LIC & Government to carry out the process of assessment of business valuation and will continue to provide all the necessary assistance for strategic disinvestment in IDBI Bank Ltd.

Asset Valuer to be appointed needs to be a reputed firm having registration with Insolvency & Bankruptcy Board of India (IBBI) to act as a valuer.

Asset Valuer | Last Date of Application

Last date for submission of application for Asset Valuer is 9th October 2023. Technical bidding will be carried out in the month of October itself and shortlisted bidder will be called for presentation after closure of bidding.

Asset Valuer will asses the fair value of assets and liabilities of IDBI Bank mentioned in their financial on a notified date as prescribed by DIPAM

Stake of GOI & LIC in IDBI Bank Ltd

GOI has a stake of around 45.48 % in IDBI Bank, while LIC holds around 49.24% as on 31st March 2023. Last year, in Oct 2023 while inviting for Expression Of Interest (EOI) , it was mentioned that GOI and LIC will divest around 30.48% & 30.24% respectively in IDBI Bank Ltd. Hence in total 60.72% stake will be divested along with transfer of management and control.

IDBI Bank Strategic Disinvestment
IDBI Bank Strategic Disinvestment

IDBI Bank Strategic Disinvestment announcement

In Union Budget 2021-22, it was decided to to do strategic disinvestment in IDBI Bank Ltd following which in May 2021, Cabinet Committee on Economic Affairs gave in-principle approval for its divestment.

Government has set a divestment target of ₹51000 Cr for FY 24 and IDBI Bank’s improved profitability could support the valuation and may generate a good sum amount from stake sell.

Government Disinvestment Target

5 days Banking update

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