Synopsis: The Indian government is accelerating the disinvestment process of IDBI Bank, with due diligence scheduled to begin in November. Bidders for the 60.72% stake, who have secured necessary clearances, will soon access the bank’s data room. Financial bids are expected in the fourth quarter of FY25, pushing the strategic sale forward.
The Indian government has advanced its plans to disinvest from IDBI Bank, with the due diligence phase set to begin in November.
According to official sources cited by ET NOW, interested bidders for the bank’s 60.72% stake are expected to gain access to the data room within the next 15 days.
These bidders, having already obtained security clearance from the Home Ministry, are preparing to move forward in the disinvestment process.
The draft Share Purchase Agreement is also being finalized, signalling significant progress in this strategic sale.
The financial bids for IDBI Bank’s strategic sale are anticipated to be submitted by the fourth quarter of FY25, according to government timelines.
Importantly, the Reserve Bank of India (RBI) is ensuring that bidders comply with the regulatory norms, particularly the requirement that a promoter holds only one bank license.
IDBI Bank has already received "fit and proper" approval from the RBI, a vital step in confirming that the sale aligns with regulatory standards.
This disinvestment is part of a broader government initiative to reduce its stakes in public sector enterprises, including banks, in a bid to generate revenue and improve efficiency within these institutions.
In conclusion, with the due diligence process starting in November and financial bids expected by the end of FY25, the IDBI Bank disinvestment marks a crucial step in the government's broader privatization efforts.
The sale's successful completion will depend on regulatory compliance and stakeholder cooperation.
Disclaimer: This article is based on reports from official sources, and no official confirmations have been made regarding the final outcome of the disinvestment process. Further details will emerge as the sale progresses.
