An inter-ministerial group (IMG) is set to meet on July 7 to deliberate on residual issues linked to the strategic sale of IDBI Bank, with a key focus on the share purchase agreement (SPA) that will govern the transaction.
The meeting will be co-chaired by department of investment and public asset management (DIPAM) secretary Arunish Chawla and financial services secretary M Nagaraju, government sources said.
“Inter-ministerial group to meet today evening is likely to discuss the residual issues in IDBI Bank strategic sale, including the share purchase agreement of IDBI Bank. The IMG meet will be co-chaired by DIPAM secretary Arunish Chawla and financial services secretary M Nagaraju,” a government source told Moneycontrol.
Another official highlighted the government’s push to finalise the SPA, terming it a necessary step to advance the transaction. “The government is focusing on finalising the SPA for strategic sale of IDBI Bank. It also needs to be approved by IMG,” another senior government official said.
The financial bids are expected to be invited from shortlisted suitors soon, the government official said.
On January 8, Moneycontrol was the first to report that Middle East banking powerhouse Emirates NBD and billionaire Prem Watsa-led Canada’s Fairfax Group had submitted EOI’s or expressions of interest for a majority stake in IDBI Bank.
The Centre, along with Life Insurance Corporation of India (LIC), currently holds 94.72 percent in IDBI Bank. The government and LIC together are planning to offload a 60.72 percent stake as part of the strategic sale. The disinvestment is a key component of the government’s fiscal roadmap, with the finance ministry aiming to meet its divestment target and asset monetisation of Rs 50,000 crore for 2025-26.
Sources have indicated that most of the issues have been addressed, and today evening’s IMG meeting is expected to resolve the remaining matters.
Shortlisted bidders, including both domestic and foreign entities, had already been granted data room access for due diligence.
Successful closure of the SPA and commencement of the bidding phase could push the transaction towards completion by the end of this fiscal year, in line with the government’s target.
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