In May 2021, the Cabinet Committee on Economic Affairs approved the strategic divestment of the center and LIC’s participation in IDBI Bank, along with the transfer of management control.
The center is holding roadshows to gauge investor interest in IDBI Bank’s strategic divestment before inviting potential bidders to express their interest, Finance Minister Bhagwat Karad said Monday.
In May 2021, the Cabinet Committee on Economic Affairs approved the strategic divestment of the center and LIC’s participation in IDBI Bank, along with the transfer of management control.
Under the original plan, the government will exit the bank by selling its entire 45.48% stake worth about Rs 22,000 crore at current market prices. Promoter Life Insurance Corporation will also sell a portion of its 49.24% stake in the bank with a view to relinquishing management control.
“The strategic buyer is expected to contribute funds, new technology and best management practices to maximize the development of IDBI Bank’s business potential and growth and generate more business without reliance on LIC and GoI for capital,” Karad said in a statement. written answer. †
In determining the terms of the strategic sale, legitimate concerns of the existing employees and other stakeholders will be appropriately addressed through appropriate provisions in the Share Purchase Agreement (SPA), the minister added.
The divestment of IDBI Bank, originally planned for the current fiscal year, will now take place in FY23.
This post Interest in IDBI Bank sale after roadshows
was original published at “https://www.financialexpress.com/industry/expression-of-interest-for-idbi-bank-sale-after-roadshows/2467241/”
