IDBI Bank has said that it cannot confirm or deny media reports claiming the Government is close to accepting Fairfax Financial’s revised offer for the bank. The bank said the stake sale process is confidential and handled entirely by the Government of India. It has not received any official update about the sale and is not aware of any price-sensitive information behind the recent rise in its share price. The bank also said it will inform the stock exchanges if it receives any official communication.
Bank’s Response to Stock Exchange
The clarification was issued after the National Stock Exchange (NSE) asked IDBI Bank to respond to a Business Standard news report titled “Govt close to accepting sweetened Fairfax Financial offer for IDBI Bank.” The exchange sought the bank’s comments after there was movement in the bank’s share price.
The media reports claimed that Government has restarted the process of selling stake in IDBI Bank. Last year the process could not be completed as Govt received bids of less amount.
Government Is Handling the Sale Process
IDBI Bank said that the strategic disinvestment is being carried out by the Government of India through a competitive bidding process. The bank clarified that it has no role in discussions or negotiations related to the sale.
No Official Communication Received
The bank said it has not received any official communication from the Government regarding the completion or finalisation of the stake sale. Therefore, it cannot verify the claims made in the media report.
No Price-Sensitive Information Available
IDBI Bank also said it is not aware of any unpublished price-sensitive information that could explain the recent rise in its share price. The bank assured investors that it would immediately inform the stock exchanges if it receives any important communication from the Government.
Disinvestment Process Has Been Ongoing
The bank said the strategic sale process has been progressing through various regulatory stages over the past few years. These include the Cabinet Committee on Economic Affairs’ in-principle approval in May 2021, the appointment of transaction and legal advisers in October 2022, updates to the Preliminary Information Memorandum, and SEBI’s approval for reclassifying the Government of India and LIC as public shareholders after the sale is completed.
Report Not Related to Any Legal Matter
IDBI Bank clarified that the media report is related only to the Government’s strategic disinvestment process. It is not connected to any legal or regulatory proceedings involving the bank.
