IDBI Bank has responded to market rumour about the government’s strategic disinvestment in the bank, adding that proposed negotiations are being undertaken through a competitive bidding process in line with the government guidelines.
According to the clarification issued to the exchanges, IDBI Bank has not “received any communication from the Govt with respect to scrapping the said process of strategic disinvestment of the Bank.”
The bank added that the disinvestment process is confidential in nature, and hence the entity cannot comment on or deny recent media reports. It further clarified that the bank has already made disclosures to the stock exchanges.
IDBI Bank: Strategic divestment timeline
Here’s a timeline of key developments so far –
- May 5, 2021: IDBI Bank received in-principle approval from the Cabinet Committee on Economic Affairs for the disinvestment process along with the transfer of management control.
- October 7, 2022: KPMG India was appointed as the Transaction Advisor and Link Legal was appointed as the legal advisor for providing advisory services and managing the transaction. The bank also informed that the government will sell 30.48% of its shares while LIC would shed 30.24% of its holdings, aggregating to 60.72%. Also, details of the Preliminary Information Memorandum (PIM) for inviting expressions of interest were published.
- October 27, 2022: Amendment to PIM for inviting expressions of interest.
- December 14, 2022: Amendment to PIM for inviting expressions of interest.
- January 5, 2023: SEBI approves re-classification of GOI as a public shareholder upon completion of sale.
- August 23, 2025: SEBI approves re-classification of LIC as a public shareholder upon completion of sale
Bank clarifies no communication on scrapping disinvestment
The bank clarified that it has not received any communication from GOI for scrapping its disinvestment. “The Bank shall promptly disclose to the Stock Exchanges any material information, if and when received,” it added in its regulatory filing.
“Further, we confirm that the Bank has, from time to time, promptly intimated the Stock Exchanges of all events and information having a bearing on the operations and performance of the Bank, including all price-sensitive information, in compliance with the provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015,” IDBI Bank said in its statement
IDBI Bank: Share Price
The bank’s share price was down more than 17%, closing at Rs 76.31. Over the past one month, the bank’s stock has declined by nearly 32%, while over the past one year, the bank’s stock has delivered a return of nearly 5%