The stake sale in IDBI Bank may not be completed by March 2024, a senior government official said.
Department of Investment and Public Asset Monetisation (DIPAM) Secretary Tuhin Kanta Pandey said the transaction is “on course” but there are aspects like the RBI’s fit and proper criteria which need to be complied with.
“We practically don’t think that before March, we can conclude it (IDBI Bank stake sale),” Pandey told reporters on the sidelines of an event organised by industry grouping Ficci here.
He was answering a question on whether the department will be able to achieve the target of raising Rs 51,000 crore from disinvestments this fiscal.
The government, which owns over 45 per cent stake in IDBI Bank, and life insurance behemoth LIC, which has a 49.24 per cent shareholding, have jointly decided to sell 60.7 per cent stake in the lender.
Pandey said that achievement of the divestment target is contingent upon important transactions like the one involving sale of majority ownership in IDBI Bank going through.
He said there is “some uncertainty” on the share sale of NMDC as well through which the department is expecting generate over Rs 10,000 crore.
On Shipping Corporation of India stake sale, Pandey said Maharashtra government recently issued an order exempting stamp duty on an asset transfer transaction which is to precede the sale.
Meanwhile, he stressed that the divestment policy should not be looked at only through the fiscal receipts lens.
“Even if we have to consider fiscal receipts, we must consider whether we should have only disinvestment as a target, or disinvestment and dividend both as a target because money is fungible,” he said.
He also hoped that the public discovers the potential of LIC, where the stock price has consistently been below the value of the listing.
