The Centre is set to the privatization of IDBI Bank in February 2022, with its advisor KPMG connecting with number of suitors. The virtual interaction will be attended by government officials and the bank’s management.
Currently, the government is open to sell its entire 94.71 per cent stake which includes LIC’s 49.24% equity stake. The sale of IDBI Bank is considered as the first case in India of “voluntary discovery” of the buyer through an open bidding process. In this bid, LIC as an insurer has to commit exiting its exposure as a pre-requisite for its initial public offering for which the DRHP was filed on13th February.
Considering the large size of the potential trade that may need an open offer and a sell down, the govrement mat retain a partial stake, after taking the feedback from investors. The central government has not yet made clear whether they will allow corporate to co-invest with the financial as a part of a consortium.
