Govt to appoint Asset Valuer to aid IDBI Bank's strategic divestment

The government has invited bids to select an asset valuer for IDBI Bank as part of its effort to divest stake in the bank. The chosen asset valuer will be responsible for assessing the bank's assets and offering support during the IDBI Bank stake sale process.

The Department of Investment & Public Asset Management (DIPAM), representing the Government of India (GoI) and LIC, is seeking the services of a respected asset valuation firm registered with the Insolvency & Bankruptcy Board of India (IBBI), DIPAM said in public notice.

“The Department of Investment & Public Asset Management (DIPAM), on behalf of Gol and LIC, wishes to engage the services of a reputed asset valuer entity - registered with Insolvency & Bankruptcy Board of India (IBBI), to act as the asset valuer for undertaking the IDBI Bank assets’ valuation and provide requisite assistance in the process of Strategic Disinvestment of IDBI Bank Limited, till the completion of the transaction,” DIPAM said in public notice.

Tuhin Kanta Pandey, DIPAM Secretary, told Moneycontrol that the appointment of various advisers, including the Asset Valuer, is a standard procedure in the process of strategic disinvestment.

"This is a normal process of strategic disinvestment for appointing various Advisers, which also includes Asset Valuer. RFP has been issued accordingly," said Tuhin Kanta Pandey.

Bids will have to be submitted by Oct. 9.

The Preliminary Information Memorandum (PIM) for soliciting Expression of Interest (EOI) in the strategic disinvestment of IDBI Bank was released on October 7, 2022.

As of March 31, 2023, LIC holds a 49.24 percent stake in IDBI Bank, while the Government has 45.48 percent stake. It has been stated that the Government plans to divest 30.48 percent, and LIC intends to divest 30.24 percent, totaling 60.72 percent, along with the transfer of management control in IDBI Bank.