IDBI Bank Privatisation: Final Stage Begins for IDBI Bank Stake Sale
| ➡️ Get instant news updates on Whatsapp. Click here to join our Whatsapp Group. |
The strategic disinvestment of IDBI Bank has reached its final stage. The Inter-Ministerial Group (IMG) has given its approval to the Share Purchase Agreement (SPA), which is a key step before the government invites financial bids from potential buyers. This was confirmed by senior government officials.
What is a Share Purchase Agreement?
A Share Purchase Agreement is an important legal document that defines how and under what conditions shares of a company will be transferred from the seller to the buyer. It includes key details like the price, responsibilities of each party, and protection clauses. In major sales like this, the SPA ensures fairness and clarity for both sides involved.
Also Read: Who is Responsible for the Downfall of IDBI Bank?
What’s Next in the Process?
Now that the IMG has approved the SPA, it will be reviewed by the Core Group of Secretaries on Disinvestment. Once approved, the government is expected to invite financial bids, likely in the first week of September 2025. A reserve price (minimum selling price) will be decided, but it will be kept confidential and not disclosed to the bidders.
Minor Delays and Clarifications
There was a slight delay in the process earlier because the three shortlisted bidders asked for some clarifications on the draft SPA. However, officials are confident that the rest of the process will move forward without further issues. It’s worth noting that Expressions of Interest (EoIs) were first submitted by potential buyers in January 2024.
Market Uncertainty Not a Concern
Despite some ups and downs in the financial markets, the government is not worried. Officials believe that temporary market conditions will not impact the disinvestment schedule. The goal is to complete the sale within the current financial year and raise between ₹40,000 crore and ₹50,000 crore from the transaction.
Also Read: Who is Responsible for the Downfall of IDBI Bank?
Stake Details and Importance
Currently, the Government of India and LIC together hold a 95% stake in IDBI Bank. Out of this, 60.72% is being sold in the ongoing disinvestment. This stake sale is part of the government’s larger strategy to reduce its control in public sector companies and raise funds.
