MUMBAI: After the divestiture, the Life Insurance Corporation of India (LIC) and the Indian government will both exit IDBI Bank at the appropriate time. Expressions of interest (EoIs) for the purchase of both the Centre's and LIC's stakes in the bank have shown the government a "good" response.
Tuhin Kanta Pandey, secretary of the department of investment and public asset management (Dipam), stated in an interview with ET Now that the stake sale has received all necessary approvals. It's a one-of-a-kind procedure. He stated, "This is the first time we are conducting a publicly competitive bidding process for the divestment of a bank."
The last day to submit EoIs from potential buyers was Friday. The government will now proceed to the second stage of the sale, in which it will submit the names of potential buyers to the RBI for legal approval.
After divestment, Pandey stated that the government would not be present on the board or in management, and Sebi stated that it would no longer be a promoter. Additionally, LIC would not be considered an associate of the insurer because its stake would be below 20%.
According to Pandey, the financial bids will be made before the reserve price is set. Bidders will be able to ask questions and gain access to the virtual data room during the subsequent stage. It is anticipated that the due diligence procedure will take between three and four months.