Government seeks merchant bankers for stake sales in PSU lenders

NEW DELHI: The Department of Investment and Public Asset Management (Dipam) on Monday invited bids from merchant bankers for serving to govt in the deliberate stake sale in choose public sector banks and listed monetary establishments.
The request for proposal (RFP) printed by Dipam mentioned govt intends to empanel guide operating lead managers, merchant bankers-cum-selling brokers for a interval of three years (additional extendable by one 12 months) in the context of dilution of govt’s fairness in choose public sector banks (PSBs), and listed public monetary establishments (PFIs), utilizing Sebi accepted strategies in accordance with the present tips. The final date for submitting the bids is March 27.
In her 2021-22 Budget speech, finance minister Nirmala Sitharaman had mentioned that govt will take up the privatisation of IDBI, two different state-run banks and one common insurance coverage firm. But to date, the progress has been restricted.
After presenting her 2025-26 Budget, Sitharaman had mentioned that privatisation will occur a minimum of for these entities that are in the listing accepted by the Cabinet.
The merchant bankers will advise govt on the timing and the modalities of the transaction. The RFP mentioned that merchant bakers can apply for empanelment for the stake sale underneath two classes. Category ‘A+’ could be for a transaction dimension of Rs 2,500 crore or extra, and class A for transaction of Rs 1,000 crore.
“The bidders can apply for empanelment with Dipam under two categories, depending upon the capacity of the bidders in handling the capital market transactions,” in accordance with the RFP.
A two-stage choice course of might be adopted for empanelment. The first stage will contain pre-qualification and brief itemizing of profitable bidders by an Inter-Ministerial Group (IMG) on the idea of bids and in accordance with the provisions of the RFP for empanelment, in accordance with the small print printed by Dipam.
The RFP mentioned that in the second stage, the eligible bidders could be required to show their credentials earlier than the IMG by means of a presentation, masking the areas/standards listed. The IMG would consider the bidders on the factors talked about based mostly on their presentation and the proposals acquired and shortlist them for empanelment.