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Encouraged by the feedback from potential investors in the recent roadshows, the Centre will likely seek expression of interest (EoI) for the sale of its stake in IDBI Bank in April, a senior official told FE.
“We have held pre-EoI roadshows to gauge investors’ interest recently and some more such events will be held in the coming days,” he said.
In May 2021, the Cabinet Committee on Economic Affairs approved the strategic disinvestment of the Centre’s and LIC’s stakes in IDBI Bank along with the transfer of management control.
As per the plan, the government will exit the bank by divesting its entire 45.48% stake worth about Rs 21,000 crore at the current market prices. Promoter Life Insurance Corporation will also sell a portion of its 49.24% stake in the bank with an intent to relinquish management control.
It is expected that the strategic buyer will infuse funds, new technology and best management practices for optimal development of business potential and growth of IDBI Bank and shall generate more business without dependence on LIC and GoI for capital, minister of state for finance Bhagwat Karad had told Parliament recently.
While deciding the terms and conditions of the strategic sale, legitimate concerns of the existing employees and other stakeholders are suitably addressed through appropriate provisions made in the share purchase agreement (SPA), the minister had added.
Success in the IDBI Bank sale may be indicative of broader investor appetite in state-owned banks with adequate loan-loss reserves.
After a gap of five years, IDBI Bank returned to profits in FY21, by posting a net profit of Rs 1,359 crore. IDBI Bank has reported a 53% jump in standalone net profit at Rs 578 crore for the third quarter ended December 2021.
from "Banking & Finance News: Banking & Finance News Today, Indian Banking & Finance News, World Banking & Finance News Today - The Financial Express " | The Financial Express https://ift.tt/xXWKF2B
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