The Department of Investment and Management of Public Assets (DIPAM) has extended the deadline for submitting transaction advisors for the strategic divestment of Banco IDBI from the previous date from July 13th to July 22nd. The ministry clarified on Friday that the government and LIC of India intend to sell whatever is at stake, with an open offer also possible under SEBI guidelines, but the amount of the stake will be made prior to the application set.
“In the immediate transaction, there will be a divestment of GoI and LIC’s stake in IDBI Bank, along with the transfer of management control. The open offer can be activated in this regard in accordance with SEBI’s provisions, ”the department said.
The mandate received from the Cabinet Committee on Economics is to offload up to 100% of the government and LIC stakes, along with the transfer of management control, the department said.
“(The portion to sell) will be determined as we move the transaction forward and determine investor interest, market appetite, etc. It is made clear that LIC’s portion will be sold along with GoI’s portion of this transaction.” he added .
It also said that the decision to continue being a co-promoter or otherwise depends on the percentage of the stake sold.
The government also clarified that bidders for the appointment of a transaction advisor for the strategic sale of IDBI Bank will not be able to bid in the consortium, adding that the advisor will stay for five years after his appointment.