IDBI Bank stake sale nears key milestone, financial bids expected in Q3 FY26

The strategic disinvestment of IDBI Bank has moved closer to completion, with due diligence and formal consultations with all qualified interested parties now finalised. Arunish Chawla, Secretary of the Department of Investment and Public Asset Management (DIPAM), confirmed on Friday that data room access protocols have also been completed. “Hope to invite financial bids in Q3 of this year (FY26),” Chawla stated.

The long-awaited stake sale, delayed multiple times over the past three years, is a critical part of the Centre’s evolving divestment strategy. Unlike earlier years where disinvestment targets were fixed, the government is now focusing on flexibility and strategic outcomes.

Currently, the Government of India and LIC together hold a 95% stake in IDBI Bank. As part of the sale, 60.72% of the bank’s equity is on offer, including 30.48% from the Centre and 30.24% from LIC, along with the transfer of management control.

DIPAM received multiple expressions of interest (EOIs) for the stake back in January 2023. The deal, once completed, is expected to significantly contribute to the Centre’s non-debt capital receipts, with a disinvestment and asset monetisation target of ₹47,000 crore for FY26.

Shares of IDBI Bank closed at Rs 90.17 on Friday, down 2.68%.