IDBI stake sale likely by end of FY26: Dipam secretary

NEW DELHI: With due diligence for the sale of govt stake in IDBI Bank accomplished, Centre is all set to ask monetary bids in the course of the Dec quarter because it expects to shortlist the ultimate bidder by the end of the monetary 12 months, a prime official mentioned Friday.“The data room process is complete for all interested parties and formal consultations with all qualified interested parties have been completed. We are hoping to complete the selection of the winning bidder by the end of the financial year,” mentioned Arunish Chawla, secretary within the division of funding and public asset administration (Dipam). While govt holds 45.5% in IDBI Bank, state-run LIC owns 49.2%. The proposed transaction includes the sale of 60.7% stake within the erstwhile growth monetary establishment that has survived on repeated govt bailouts during the last 20 years.The stake sale plan, introduced three years in the past, has seen a number of twists and turns and coincides with the Reserve Bank of India’s evaluation of the shareholding norms, together with by abroad gamers. Fairfax and Emirates NBD, which lately acquired regulatory approval to arrange a neighborhood subsidiary within the nation, are seen as entities concerned about buying govt and LIC’s shares in IDBI Bank. Once the bids are submitted, they are going to be evaluated by govt and the shortlisted prime bidder will want a go forward from RBI earlier than the Centre clears the sale proposal. Besides, different regulatory approvals will likely be wanted.Asked about govt’s plan to promote stake in LIC by way of an offer-for-sale, Chawla mentioned no transaction particulars will be shared. He, nonetheless, added that service provider bankers and authorized advisers have been appointed for 3 years and they’re going to advise the Centre on stake sale in public monetary establishments, together with banks.