Revised bids received for IDBI Bank stake sale; government reviews disinvestment process

Government is accelerating the IDBI Bank stake sale process. Two bidders, Fairfax and Emirates NDB, are being considered. This follows the rejection of earlier bids below the reserve price. Recent foreign investments in Indian banking include Yes Bank and RBL Bank. Mitsubishi UFJ Financial Group also made a significant investment in Shriram Finance.

The government has received revised financial bids for the strategic sale of IDBI Bank from Fairfax Financial Holdings and Emirates NBD, sources said on Tuesday. A final decision on the successful bidder will be taken once the financial bids are opened, which is likely very soon, sources added. According to sources, both the bidders have experience in the Indian banking sector, with Dubai-based Emirates NDB acquiring RBL Bank earlier this year and billionaire investor Prem Watsa-backed Fairfax Financial already holding a 40 per cent stake in the private-sector CSB Bank. Both the bidders already have security clearance from the Ministry of Home Affairs (MHA) and 'Fit and Proper' assessment from the RBI. The government and LIC were together looking to sell 60.72 per cent in IDBI Bank and had floated an Expression of Interest (EoI) in October 2022. Financial bids came on February 6. However, the financial bids from Fairfax Financial Holdings and Emirates NBD were below the reserve pr

Shares of IDBI Bank gained more than 3% in early trade on Tuesday after reports suggested that the government has approved the strategic disinvestment of the lender.At 11 am, the stock was trading at Rs 86.75 on the NSE, up 3.51%. The rally came after CNBC-TV18 reported, citing sources, that the government had given approval for the strategic sale of IDBI Bank.The development follows a series of high-level meetings held by the government on July 13 to review the long-pending disinvestment process. Moneycontrol had earlier reported that two meetings of the Core Group of Secretaries on Disinvestment (CGD) were held during the day to discuss matters related to the stake sale.IDBI Bank Disinvestment Revives As Fairfax Submits Fresh Bid Of $5 Billion An Inter-Ministerial Group (IMG) also met to assess the progress of the strategic disinvestment. 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).The strategic sale of IDBI Bank has faced delays due to valuation concerns and differences between the government and potential bidders. Earlier reports suggested that offers from shortlisted suitors were below the government’s expected valuation, prompting a review of the process and fresh discussions.IDBI Bank Stake Sale: Govt Examining Legal Provisions To Accept Bids Below Reserve Price The government and Life Insurance Corporation of India (LIC) together hold nearly 95% stake in IDBI Bank. As part of the proposed transaction, they plan to divest a combined 60.72% stake along with management control of the lender.The Centre is expected to sell its 30.48% holding, while LIC will divest 30.24% of its stake. The move is aimed at transferring management control to a private investor and reducing government ownership in the banking sector.Canada-based Fairfax Financial Holdings has emerged as one of the key contenders for the acquisition. Fairfax India Holdings had submitted an Expression of Interest (EoI) for the proposed transaction and remains among the bidders participating in the strategic disinvestment process.The stake sale is expected to mark a significant step towards the privatisation of IDBI Bank, which has been part of the government’s broader disinvestment strategy aimed at attracting private investment and improving efficiency in state-linked enterprises.

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."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 Billion The 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 Price The 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.

Sources told NDTV Profit that Fairfax Holdings' revised bid is closer to the government's reserve price, with the Centre targeting around Rs 50,000 crore from the strategic disinvestment.

Sources told NDTV Profit that Fairfax Holdings' revised bid is closer to the government's reserve price, with the Centre targeting around Rs 50,000 crore from the strategic disinvestment.