IDBI Bank divestment: Due diligence by qualified bidders 'nearly complete', says DIPAM Secy, share soars 8 percent

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.

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Qualified interested bidders for the stake sale of IDBI Bank have nearly completed the due diligence for the divestment, and the process is likely to be concluded by the next month, DIPAM Secretary Arunish Chawla said on August 21, sending shares of lender higher by over 8 percent.

"The EoI part of the process has been fully completed, the qualified parties have been through a provisional fit and proper assessment by the RBI. They are now doing the due diligence, and all details have been made available through the data room. We are in an advanced stage of completing the due diligence exercise and further steps, essentially the RFP stage, we hope to complete by the end of the financial year," Arunish Chawla told CNBC-TV18 during an interaction.

DIPAM said all necessary details relating to the divestment have been shared with the qualified bidders, and the technical document for the divestment is ready now. The stake sale process, which is likely to conclude this fiscal, includes divestment of LIC's stake in the lender.

Centre has already completed Rs 20,000 crore worth of divestment during Q1FY26 out of the targetted Rs 47,000 crore for the fiscal. The IDBI Bank stake sale, after multiple delays, is moving forward and is considered as key to government's broader 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 Centre has been working on the share purchase agreement with potential buyers and will be seeking approval from the ministerial panel overseeing the deal.

IDBI Bank shares have surged 27 percent year-to-date, vastly outperforming the Nifty 50 index’s 5.5 percent rise.