Monday, December 11, 2023

Govt, LIC to exit IDBI at appropriate time: Dipam

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MUMBAI: Both the government and the Life Insurance Corporation (LIC) of India will exit from IDBI Bank post-divestment at an appropriate time. The government has received a ‘good’ response in the form of expressions of interest (EoIs) for purchasing both the Centre’s and LIC’s stakes in the bank.
Speaking to ET Now, department of investment and public asset management (Dipam) secretary Tuhin Kanta Pandey said that all decks have been cleared for the stake sale. “It is quite a unique process. It is the first time we are having divestment of a bank in a publicly competitive bidding process,” he said.
Friday was the last date for receiving EoIs from prospective buyers. The government will now move to the second stage of the sale, which includes referring the names of the potential buyers to the RBI to get a fit and proper clearance.
Pandey said that the government does not intend to have any presence on the board or management after divestment, and Sebi has said that it would cease to be a promoter. LIC’s stake also would be below 20%, and it would not be reckoned as an associate of the insurer.
Pandey said that the reserve price fixation will take place after the financial bids have been placed. In the next stage, bidders will get access to the virtual data room and get their queries answered. The due diligence process is expected to take around three to four months.

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