The Center has resolved all concerns related to data rooms in the IDBI bank’s divestment process, paving the way for the next stage of the transaction. With a reasonable diligence almost completed, the government remains confident to soon invite financial offers.
“The privatization process of the IDBI bank is progressing smoothly. All data room problems have been resolved and financial offers will be invited shortly, “said a main government official at Business Today TV.
The reasonable diligence process, which has enabled potential bidders to access the bank’s financial data, was a crucial step to determine the assessments and finalize the amounts of the offer. According to civil servants, the resolution of the data room concerns indicates that the transaction is heading to its final stages.
“There was no hiccups, but just a few questions of data room posed by potential bidders who have now been resolved,” added the manager.
The privatization of IDBI bank was a long -standing process, from January 2023 when the center issued an expression of interest. The Government and Life Insurance Life of India (LIC) plan to jointly unload a participation of 61% in the lender, including a participation of 30.48% owned by the center and 30.24% by LIC.
This is the largest privatization movement since the sale of India air. However, the officials remained close to the expected realization of the sale of stakes.
Since the post-electoral budget of June 2024, the government has moved away from the setting of disinvestment objectives, by focusing rather on the increase in income collections without taxation. For the 2010 exercise, total revenue of the Government DIPAM government is now raising at Rs 68,263 crores, including 8,625 roots of rupees from the divestment.
The Union budget for 2025-26 targeted RS 47,000 crores from divestment and the monetization of assets, although no specific allowance has been made for Idbi Bank.
