IDBI Bank privatisation: Govt likely to extend deadline to submit bids till Jan

The Indian government will likely extend the deadline to submit expressions of interest for its stake sale in IDBI Bank to up to mid-January from December 16 previously, sources told Business Today.

The government and LIC together are looking to sell a 60.72% stake in IDBI Bank and the government said last week it would allow a consortium of foreign funds and investment firms to own more than 51% of the lender.

Government is reportedly overwhelmed with the response on interest and queries from perspective bidders.

Department of Investment and Public Asset Management (DIPAM) is likely to invite financial bids in early 2023, said sources.

Transaction advisors have received a few requests for an extension of the deadline. Since foreign investment bankers would not be working due to year-end holidays, the deadline would be extended, an official told PTI.

The government on October 7 had invited bids for the EoI of IDBI Bank. Both the government and Life Insurance Corporation (LIC) hold 94.71% shares in the lender.

Earlier, the DIPAM had said the potential buyers should have a minimum net worth of Rs 22,500 crore and must report a net profit in three out of the last five years to qualify to bid for the bank. In addition, a maximum of four members would be permitted in a consortium.

Also, the successful bidder would be required to mandatorily lock in at least 40% of the equity capital for five years from the date of acquisition.