The sale process for IDBI Bank has gained momentum after a year-long pause, allowing potential buyers to access confidential data for due diligence, according to a report by The Economic Times. Prospective buyers include Fairfax Financial, Emirates NBD, Oaktree Capital, and Kotak Mahindra Bank, who submitted their expressions of interest (EOIs) in January 2024.
Government and LIC to Sell Majority Stake
The Union government and Life Insurance Corporation (LIC) together hold a 95% stake in IDBI Bank, of which they plan to sell 60.72%. The government has already reviewed the applications of potential buyers, marking significant progress in the disinvestment process.
Access to Critical Bank Data
As part of the due diligence phase, bidders now have access to a cloud-hosted data room. This repository contains non-public details such as:
- Information on the bank’s top 20 borrowers,
- Loan exposure,
- Provisioning data, and
- Details of non-performing assets (NPAs).
Next Steps in the Sale Process
According to the report, bidders must submit their final financial bids by the end of February 2025. The entire transaction is expected to conclude by the first half of the next financial year (FY26).
Key milestones in the process include:
- Sharing a draft share purchase agreement with bidders.
- Submission of financial bids.
- Setting a confidential reserve price for the sale.
Sale of Stake in PIPDIC
In a related move, IDBI Bank’s board recently approved the sale of its 854,000 shares in Pondicherry Industrial Promotion Development and Investment Corporation Ltd (PIPDIC). This represents a 21.14% stake in the associate company.
The resumption of the IDBI Bank sale process marks a crucial step in India’s disinvestment program, with the government aiming to meet its fiscal goals while attracting credible investors to the banking sector.
-
-
-
-
-
-
