The government has extended the deadline for transaction and legal advisors to bid for managing the IDBI Bank strategic sale by 9 days till 22 July.
The Department of Investment and Public Asset Management (DIPAM) had on 22 June invited bids from merchant bankers and law firms for managing and giving legal advice for the sale process. The last date to put in bids was13 July.
“… The competent authority has decided to extend the bid submission date of the… tender by nine days. The last date of bid submission will now be 22 July 2021,” the DIPAM said in a notice.
DIPAM, which manages government’s equity, had also clarified to the merchant bankers that Life Insurance Corporation of India (LIC) holding in IDBI Bank would be sold along with government’s stake, but the quantum of stake dilution would be decided later.
The central government and LIC together own more than 94% equity of IDBI Bank. LIC, currently having management control, has a 49.24% stake, while the government holds 45.48% in the bank. Non-promoter shareholding stands at 5.29%.
The cabinet in May had approved the strategic sale of the entire stake of government and LIC in IDBI Bank.
In response to queries received from potential transaction advisors in IDBI Bank, DIPAM has clarified that since LIC’s stake would be sold along with that of the government’s, a single transaction advisor would manage the entire share sale process.
“The mandate received from CCEA is to offload up to 100% stake of GoI and LIC along with transfer of management control. However, the exact quantum is yet to be worked out. It will be determined, as we go through the transaction and ascertain investors’ interest and market appetite. It is clarified that LIC’s stake will be sold along with GoI’s shareholding in this transaction. So there is only one transaction advisor,” it said.
