The government on Tuesday solicited bids to engage transaction and legal advisers to help in the strategic sale of its stock, as well as transfer of management control, in IDBI Bank to private companies, kicking off the privatisation process in the banking industry.
Transaction advisors, which might include consulting companies, investment or merchant bankers, and financial institutions/banks, will handle all elements of the planned strategic disinvestment. It will involve advising the government on disinvestment modalities and timing, structuring the deal, conducting roadshows for possible investors, and recommending methods to maximise value.
According to the draft request for proposal document released by the Department of Investment and Public Asset Management (DIPAM) on Tuesday, the advisor will assist in negotiations with shortlisted bidders, determining the range of fair reserve price, and assisting IDBI Bank in the establishment of the e-data room that will assist investors in conducting due diligence.
The government now controls 45.48 percent of IDBI Bank, while Life Insurance Corporation owns 49.24 percent and public shareholders own the remaining 5.29 percent. DIPAM has indicated that public sector banks are not permitted to participate as bidders in the purchase of IDBI Bank. Bids from transaction and legal advisers must be submitted by July 13. With Cabinet approval and legal conditions in place, the IDBI Bank deal is anticipated to be completed faster than the process of privatising two other banks mentioned in the Budget.
ALSO READ : India receives $64 billion FDI in 2020, making it the world’s fifth largest beneficiary of inflows
Hello, my name is Anuj Boruah. I am quite interested in writing about current events in business, finance, and the economy. I work as a newswriter at Reviewminute.