The Centre is holding roadshows to gauge investor interest for strategic disinvestment of IDBI Bank before inviting expression of interest (EoI) from potential bidders, minister of state for finance Bhagwat Karad said on Monday.
In May 2021, the Cabinet Committee on Economic Affairs approved the strategic disinvestment of the Centre and LIC’s shareholding in IDBI Bank along with transfer of management control.
As per the initial plan, the government will exit the bank by divesting its entire 45.48% stake worth about Rs 22,000 crore at the current market prices. Promoter Life Insurance Corporation will also sell a portion of its 49.24% stake in the bank with an intent to relinquish management control.
“It is expected that the strategic buyer will infuse funds, new technology and best management practices for optimal development of business potential and growth of IDBI Bank and shall generate more business without dependence on LIC and GoI for capital,” Karad said in a written reply.
While deciding the terms and conditions of the strategic sale, legitimate concerns of the existing employees and other stakeholders are suitably addressed through appropriate provisions made in the share purchase agreement (SPA), the minister added.
The IDBI Bank disinvestment, initially planned for the current financial year, will now take place in FY23.