The IDBI Bank disinvestment process is set to be finalised in March, a report by CNBC TC18 stated citing government officials. While adding that the central government has set a target of completing the IDBI transaction by the first half of next financial year, the officials maintained that the Centre is also planning to invite financial bids soon.
Another report by Business Today TV said that the centre has resolved all data room-related concerns in the IDBI Bank disinvestment process. This has paved the way for the next stage of the transaction. “The IDBI Bank privatisation process is progressing smoothly. All data room issues have been addressed, and financial bids will be invited shortly,” a senior government official told the news channel.
The due diligence process, which allowed potential bidders access to the bank’s financial data, was a crucial step in determining valuations and finalising bid amounts and the Business Today TV report said that the resolution of data room concerns signals that the transaction is moving towards its final stages. “There was no hiccup, but just a few data room queries asked by potential bidders that have now been resolved,” the official maintained.
The privatisation of the Bank has been a long-drawn process that began in January 2023 when the Centre issued an Expression of Interest. The government and Life Insurance Corporation of India (LIC) plan to jointly offload a 61 per cent stake in IDBI Bank, which includes a 30.48 per cent stake held by the Centre and 30.24 per cent by LIC.
The Union Budget for 2025-26, meanwhile, has targeted Rs 47,000 crore from disinvestment and asset monetisation, though no specific allocation has been made for IDBI Bank.