NEW DELHI: With due diligence for the sale of govt stake in IDBI Bank completed, Centre is all set to invite financial bids during the Dec quarter as it expects to shortlist the final bidder by the end of the financial year, a top official said Friday.“The data room process is complete for all interested parties and formal consultations with all qualified interested parties have been completed. We are hoping to complete the selection of the winning bidder by the end of the financial year,” said Arunish Chawla, secretary in the department of investment and public asset management (Dipam). While govt holds 45.5% in IDBI Bank, state-run LIC owns 49.2%. The proposed transaction involves the sale of 60.7% stake in the erstwhile development financial institution that has survived on repeated govt bailouts over the last 20 years.The stake sale plan, announced three years ago, has seen several twists and turns and coincides with the Reserve Bank of India’s review of the shareholding norms, including by overseas players. Fairfax and Emirates NBD, which recently received regulatory approval to set up a local subsidiary in the country, are seen as entities interested in acquiring govt and LIC’s shares in IDBI Bank. Once the bids are submitted, they will be evaluated by govt and the shortlisted top bidder will need a go ahead from RBI before the Centre clears the sale proposal. Besides, other regulatory approvals will be needed.Asked about govt’s plan to sell stake in LIC through an offer-for-sale, Chawla said no transaction details can be shared. He, however, added that merchant bankers and legal advisers have been appointed for three years and they will advise the Centre on stake sale in public financial institutions, including banks.
