The Centre is hopeful of inviting financial bids for the IDBI Bank stake sale by the third quarter of the fiscal, and the winning bidder is likely to be selected by the end of FY26, DIPAM Secretary Arunish Chawla said on August 1.
The government has completed the process of due diligence, and data room protocols have been completed for all interested parties, the secretary said, adding that formal consultations have been completed with all qualified and interested parties.
The formal consultation process for the stake sale has been completed with all the qualified and interested parties, DIPAM Secretary further confirmed.
The IDBI Bank stake sale has faced multiple delays over the past few years and is seen a important part of the Centre's divestment strategy. The government and the Life Insurance Corporation of India (LIC) jointly own 95 percent of IDBI Bank, of which 60.72 percent stake is earmarked for sale under the ongoing disinvestment programme.
The Inter-Ministerial Group (IMG) on disinvestment had on July 9 discussed the draft Share Purchase Agreement ahead of final approvals.
For the June quarter, IDBI Bank reported a 17 percent on-year rise in standalone net profit at Rs 2,007 crore. The lender saw strong growth in income from advances at Rs 4,771 crore, up from Rs 4,424 crore a year ago. Read More
Shares of IDBI Bank ended lower by 2.8 percent on August 1, while in the last one month, they are lower by 14 percent. However, on a YTD basis, the shares of the lender are higher by 17 percent.
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