New Delhi: The Narendra Modi government at the Centre has invited bids to engage an asset valuer for IDBI Bank in an attempt to speed up its effort to divest stake in the bank.
The selected asset valuer will be responsible for assessing the bank's assets and offering support during the IDBI Bank stake sale process, according to the Department of Investment & Public Asset Management (DIPAM).
The government along with the LIC is selling about 61 per cent stake in IDBI Bank and has received multiple Expressions of Interest (EoI) for the same.
“The Department of Investment & Public Asset Management (DIPAM), on behalf of Gol and LIC, wishes to engage the services of a reputed Asset Valuer Entity - registered with Insolvency & Bankruptcy Board of India (IBBI), to act as the Asset Valuer for undertaking the IDBI Bank assets’ valuation and provide requisite assistance in the process of Strategic Disinvestment of IDBI Bank Limited, till the completion of the transaction.,” DIPAM said in a 60-page public notice.
"IDBI Bank is listed on NSE and BSE in India. In order to determine the value of IDBI Bank, the Asset Valuer is required to carry out the fair valuation of all the assets and liabilities appearing on the balance sheet of IDBI Bank, as on a date prescribed and notified by DIPAM, on an "as is where is basis", DIPAM said explaining the "Terms of Reference".
The Cabinet Committee on Economic Affairs (CCEA) on May 05, 2021 had given its in-principle approval for strategic disinvestment of GoI and LIC’s equity, along with transfer of management control, in IDBI Bank.
As per DIPAM, LIC holds 49.24% (c. 529.41 crore shares) while the Government of India holds 45.48% (c. 488.99 crore shares) in IDBI Bank as on March 31, 2023.
After the disinvestment, the LIC will own 19% whereas the GoI share will come down to 15% in IDBI Bank.
Currently, the government and the RBI are in the process of vetting the bids received. Security clearance from the government and 'fit and proper' clearance from the RBI would be necessary for the bidders to move to the second stage of bidding process which is due diligence and subsequent invitation of financial bids.
According to Timeline, bidders should submit their bids in the prescribed format in online mode. Date of publication of RFP document is Sept 01, 2023, pre-bid meeting will be held on Sept 22, 2023, bid due date is October 09, 2023 whereas technical bid opening date is October 10, 2023.
"Opening of Finacial Bids will be intimated separately to the shortlisted bidders", the DIPAM said.
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