IDBI Bank sale: Data room access and valuation exercise underway, says DIPAM secretary

The strategic disinvestment of IDBI Bank, where the government and Life Insurance Corporation (LIC) together hold over 94 percent stake, is expected to be completed in the current financial year.

The strategic sale of IDBI Bank is progressing steadily, with key procedural milestones such as data room access and asset valuation now in motion, DIPAM secretary Arunish Chawla said on April 9.

The development marks a significant step in the government’s efforts to privatise the lender and achieve its broader disinvestment goals in the current financial year.

“IDBI Bank's strategic sale is moving ahead as per government's decision. Many things are moving parallelly on several fronts. We have established a virtual data room and are answering the queries of bidders. We have also appointed asset valuers so that the process of valuation could be completed on time. Share purchase agreement is being deliberated upon,” Chawla said during a media interaction.

He highlighted the progress being made on several fronts, including the facilitation of bidder due diligence through a virtual data room, a critical component in any strategic sale process. The appointment of asset valuers is also seen as a preparatory step to ensure the timely completion of valuation.

The strategic disinvestment of IDBI Bank, where the government and Life Insurance Corporation (LIC) together hold over 94 percent stake, is expected to be completed in the current financial year.

In January 2023, the government had received multiple expressions of interest (EoIs) for the sale of a 60.72 percent stake in the bank. The shortlisted bidders are currently engaged in due diligence.

For the financial year 2025-26, the Centre has set a disinvestment and asset monetisation target of Rs 47,000 crore. The IDBI Bank transaction is expected to be one of the most significant contributors to this target, alongside other divestment plans.

A virtual data room (VDR) is a secure online repository used for storing and sharing sensitive data with potential bidders during mergers, acquisitions or disinvestment transactions. It allows interested parties to review documents confidentially. Asset valuation, meanwhile, involves determining the fair market value of IDBI Bank’s assets, a crucial step before pricing the government’s stake.

The IDBI Bank sale was announced in the Union Budget 2021-22, and although timelines have seen delays, DIPAM’s renewed push indicates momentum in completing the transaction.