India seeks asset valuer for strategic divestment of IDBI Bank, bids open until October 9

Moreover, the valuation will encompass the examination of IDBI Bank's deposits, borrowings, and other liabilities to ensure a holistic understanding of the institution's financial standing. By appointing an asset valuer to assess the bank's financial health, the government aims to facilitate a transparent and fair valuation process.

Bids from asset valuers interested in contributing to the strategic sale of IDBI Bank are invited until October 9.

This January, the Indian government received multiple preliminary bids for the strategic sale of approximately 61 percent of its stake in IDBI Bank. The government, in conjunction with the Life Insurance Corporation (LIC), has been actively seeking to divest 60.72 percent of its holdings in IDBI Bank.

This divestment effort commenced with an invitation for bids from potential buyers in October, with the initial deadline for submitting Expressions of Interest (EoI) or preliminary bids set for December 16. This deadline was subsequently extended to January 7 to accommodate interested parties.

As of now, the government and LIC collectively possess a 94.71 percent stake in the bank. The winning bidder will be required to conduct an open offer to acquire an additional 5.28 percent of the bank's public shareholding.

The Department of Investment and Public Asset Management (DIPAM) had previously outlined certain eligibility criteria for potential buyers. To qualify for bidding, interested parties must have a minimum net worth of Rs 22,500 crore and a record of reporting a net profit in at least three of the past five years.

Furthermore, consortiums bidding for IDBI Bank would be limited to a maximum of four members. Additionally, the successful bidder would be obligated to lock in a minimum of 40 percent of the equity capital for a period of five years from the date of acquisition.

Shares of IDBI Bank Ltd ended at Rs 60.13, up by Rs 0.35, or 0.59 percent on the BSE.