Department of Investment and Public Asset Management (DIPAM) has short-listed seven international firms including JM Financial, Ernst and Young, Deloitte, and KPMG as transaction advisers for the government’s stake sale in IDBI Bank, PTI reported.
As per a notice by DIPAM, these firms should make a virtual presentation before the DIPAM, which is handling the sale process, on August 10. After the presentation, one firm will be selected as the transaction advisor.
The government has a shareholding of 45.48%, while LIC India holds 49.24%. According to PTI, in June, the government started inviting bids from reputed professional consulting firms/investment, bankers/merchant bankers to assist DIPAM in the process of strategic disinvestment of IDBI Bank Ltd. along with transfer of management control, till completion of the transaction.
DIPAM has barred public sector banks from bidding. Subsidiaries of IDBI Bank – IDBI Capital Markets – cannot participate as bidders either for transaction advisors, The Economic Times reported.
In February, while presenting the Union Budget 2021-22, Union Finance Minister Nirmala Sitharaman had said that the process of privatization of IDBI Bank would be completed in the current fiscal. The government aims to mop up Rs 1.75 lakh crore in the current fiscal from minority stake sale and privatization, PTI reported.
So far in the current fiscal, the government has mobilized Rs 7,648 crore as disinvestment receipts.
