Govt extends last date for IDBI Bank stake sale EoI to Jan 7

The Department of Investment and Public Asset Management (DIPAM) on Wednesday extended the deadline to submit Expression of Interest (EoI) for the privatisation of IDBI Bank till January 7. The department stated that the deadline for the submission of EoI has been extended till January 7 from the earlier deadline of December 16, while the last date of submission of the physical copies of the EoIs has been extended till January 14 from the earlier December 23.   

The government and Life Insurance Corporation of India are aiming to sell 60.72 per cent of IDBI Bank, and to also cede control of the bank. This extension of the deadline comes as transaction advisors received requests for the same. 

On October 27, DIPAM had issued its first corrigendum, extending the last date for submission of written queries on PIM (Preliminary Information Memorandum) from October 28 to November 10.  

LIC and the government hold 94.71 per cent of IDBI Bank. The successful bidder will have to make an open offer of acquisition of 5.28 per cent of the public shareholding. 

DIPAM had earlier stated that the potential buyers would need to have a minimum net worth of Rs 22,500 crore and must have reported a net profit in three out of the last five years to even qualify for the bank. As for consortiums, a maximum of four members would be permitted. The successful bidder would further have to lock in at least 40 per cent of the equity capital for five years from the date of acquisition.

Also read: IDBI Bank privatisation: Govt likely to extend deadline to submit bids till Jan