DIPAM secretary has clarified that the IDBI divestment process is on track and news reports claiming that the process has been deferred are misleading and speculative.
He said that the process is in the post-EoI stage following receipts of multiple EoIs.
"Reports appearing in a section of the media indicating the possibility of deferment of IDBI Bank disinvestment are misleading, speculative and baseless. The transaction continues to be on track as per the defined process in post-EoI stage following receipts of multiple EoIs," the DIPAM secretary tweeted.
Reports appearing in a section of the media indicating the possibility of deferment of IDBI Bank disinvestment are misleading, speculative and baseless. The transaction continues to be on track as per the defined process in post-EoI stage following receipts of multiple EoIs. pic.twitter.com/HL8a1Xc3H5— Secretary, DIPAM (@SecyDIPAM) March 17, 2023
Earlier, a Mint report claimed that the government is likely to defer the IDBI Bank stake sale as it fears that the unprecedented market volatility could deter prospective buyers.
It cited people familiar with the matter stating that government may get a much lower value from the total 60.72 percent stake sale than what it expected earlier due to market volatility and the weakness in bank's stock price.
The government and Life Insurance Corporation (LIC) hold 94.71 percent stake in the bank.
The government, which owns 45.48 percent of IDBI Bank, is looking to divest a 30.48 percent stake in the lender, alongside state-owned Life Insurance Corp of India (LIC) (LIFI.NS), which will sell a 30.24 percent stake from its holding of 49.24 percent in the bank.
The government had received initial bids in January from multiple bidders. Financial bids for IDBI Bank will be called only after due diligence, DIPAM secretary Tuhin Kanta Pandey told CNBC-TV18 in January.
On March 17, the stock closed at Rs 46.85 on the NSE, higher by 5.5 percent from the previous close. The stock is down over 15 percent for 2023 so far.
