The Centre has resolved all data room-related concerns in the IDBI Bank disinvestment process, paving the way for the next stage of the transaction. With due diligence nearly complete, the government remains confident of inviting financial bids soon.
“The IDBI Bank privatisation process is progressing smoothly. All data room issues have been addressed, and financial bids will be invited shortly,” a senior government official told Business Today TV.
The due diligence process, which allowed potential bidders access to the bank’s financial data, was a crucial step in determining valuations and finalising bid amounts. As per officials, the resolution of data room concerns signals that the transaction is moving towards its final stages.
"There was no hiccup, but just few data room queries asked by potential bidders that have now been resolved" the official added.
The privatisation of IDBI Bank has been a long-drawn process, beginning in January 2023 when the Centre issued an Expression of Interest. The government and Life Insurance Corporation of India (LIC) plan to jointly offload a 61% stake in the lender, including a 30.48% stake held by the Centre and 30.24% by LIC.
This is set to be the biggest privatisation move since the Air India sale. However, officials have remained tight-lipped about the expected realisation from the stake sale.
Since the post-election Budget of June 2024, the government has moved away from setting disinvestment targets, focusing instead on boosting non-tax revenue collections. For FY25, The government's total DIPAM receipts now stand at Rs 68,263 crore, including Rs 8,625 crore from disinvestment proceeds.
The Union Budget for 2025-26 has targeted Rs 47,000 crore from disinvestment and asset monetisation, though no specific allocation has been made for IDBI Bank.