Govt Reviews IDBI Bank Disinvestment Plan After Fairfax Submits Revised Bid
· Free Press Journal
The government has initiated fresh discussions on the long-pending strategic disinvestment of IDBI Bank, with senior officials holding multiple meetings on July 13 to review the progress of the stake sale process.
According to a report by Moneycontrol, two separate meetings of the Core Group of Secretaries on Disinvestment (CGD) were conducted during the day to discuss various issues related to the proposed divestment of the public sector lender.
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"Two meetings of the Core Group of Secretaries on Disinvestment (CGD) met on July 13 to discuss matters related to the government's IDBI Bank disinvestment," the report cited a government source as saying.
An Inter-Ministerial Group (IMG) also convened a meeting on the same day to assess the status of the strategic sale process. The meeting was jointly chaired by Sanjay Lohiya, Secretary, Department of Financial Services, and Arunish Chawla, Secretary, Department of Investment and Public Asset Management (DIPAM).
IDBI Bank Disinvestment Revives As Fairfax Submits Fresh Bid Of $5 BillionThe meetings come amid reports that Fairfax India Holdings, led by Canadian billionaire Prem Watsa, has submitted a revised offer for IDBI Bank.
The development follows an earlier round of bidding that reportedly stalled after differences emerged over valuation.
Earlier, shortlisted bidders, including Fairfax and Emirates NBD, were said to have submitted offers below the government’s reserve price, leading authorities to pause the process and undertake a fresh valuation exercise.
The government and Life Insurance Corporation of India (LIC) currently hold a combined stake of nearly 95% in IDBI Bank.
As part of the strategic disinvestment plan, they aim to sell a total 60.72% stake along with management control of the bank.
IDBI Bank Stake Sale: Govt Examining Legal Provisions To Accept Bids Below Reserve PriceThe Centre plans to divest its 30.48% stake, while LIC will sell 30.24% of its holding.
The latest review meetings indicate renewed efforts by the government to move forward with the privatisation process, which has faced delays due to valuation concerns and negotiations with prospective buyers.
IDBI Bank’s strategic sale is among the key disinvestment initiatives aimed at reducing government ownership in state-linked enterprises while attracting private investment into the banking sector.