InvestorQ : When is the government likely to sell its stake in IDBI Bank?
Deepa Salunkhe made post

When is the government likely to sell its stake in IDBI Bank?

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Arya Nanda answered.
3 months ago
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While the government is keen to complete the stake sale in IDBI Bank in the current fiscal year, merchant bankers have a different perspective. Most of the merchant bankers who submitted bids for IDBI Bank divestment have asked for a total time period of up to one year to complete the entire process. While the government continues to be a major shareholder directly also, IDBI Bank is currently controlled by Life Insurance Corporation or LIC.

Among the bidders, it was KPMG that had placed the lowest bid of Rs.1 and was therefore selected as transaction adviser for the divestment. The government of India and LIC jointly own 94% of IDBI Bank, with IDBI owning 49% and the government 45%. The extent of the divestment by the government will be decided subsequently based on the valuation reports prepared, capital infused planned as well as the stock price signals.

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