IDBI Bank gains 2% as govt invites fresh bids from asset valuers for divestment

So far this year, the stock of this state-owned lender has surged over 15 percent as against 9 percent rise in the benchmark Sensex

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

live

• bselive
• nselive

Volume

Todays L/H

More

×

Shares of IDBI Bank gained 2.5 percent to Rs 63 on November 30 as the government has once again sent invitation for the appointment of an asset valuer. This is the second time the government has attempted to appoint a valuer after the previous one received a poor response.

So far this year, the stock of this state-owned lender has surged over 15 percent as against a 9 percent rise in the benchmark Sensex.

Follow live blog for all the market action

According to the Department of Investment & Public Asset Management (DIPAM), fresh bids have been invited for engagement of an asset valuer for strategic disinvestment of IDBI Bank through its request for proposal (RFP) document. The last date of submitting a bid is set at January 5, 2024, while the pre-bid meeting is scheduled for December 18, 2023.

Later, the bids are scheduled to open on January 8, 2024 after which fresh dates will be announced for presentation of shortlisted bidder.

Earlier, the RPF on September 1 was cancelled as it is believed that the government received limited participation by interested parties.

Also read: Govt invites fresh bids from asset valuers of IDBI Bank

In order to determine the value of IDBI Bank, an asset valuer will carry out fair valuation of all the assets and liabilities appearing on its balance sheet. The asset valuer will work in close coordination with the transaction advisor and legal advisor.

As of March 31, 2023, LIC holds 49.2 percent in IDBI Bank, while the government holds 45.4 percent. During the course of the divestment, the government plans to offload 30.4 percent stake and LIC is expected to sell around 30.2 percent, aggregating to 60.7 percent total divestment and transfer of management control in IDBI Bank.

In the September-ended quarter, IDBI Bank's net profit surged 60 percent year-on-year (YoY), while net interest income increased by 12 percent YoY.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.