IDBI stake sale: Deadline for bid submission likely to be extended
News Delhi: The last date for submitting bids for strategic disinvestment in IDBI Bank is likely to be extended to January, media reports said.
The government is looking to stretch the deadline from December to a date in January after receiving requests from interested bidders, said the reports citing an official.
The government and the Life Insurance Corporation of India (LIC) will offload their 60.72 percent stake in the strategic sale of IDBI Bank.
The successful bidder will get the management control of the bank.
The disinvestment process would involve two stages. First, the bidders meeting initial eligibility criteria have to go through an assessment by the Reserve Bank of India and security clearance from the home ministry.
The qualified bidders will have to sign a confidentiality agreement with the government.
The bids will be sought after these two stages.
On December 6, the Department of Investment and Public Asset Management (DIPAM) said in a response to interested bidders' queries that a consortium of foreign funds and investment firms are allowed to buy and own over 51 percent of IDBI Bank Ltd.
The existing Reserve Bank of India guidelines restrict foreign ownership in new private banks.
The residency criteria would not apply to a consortium consisting of funds investment vehicles incorporated outside India, DIPAM said in its clarification.
The DIPAM has received strong interest with over 150 queries about the proposed stake sale and transfer of management control in IDBI Bank from several prospective bidders, according to media reports.