The deadline to submit preliminary bids for IDBI Bank privatisation is likely to be extended by almost a month till early January, a government official said on Friday.
The government and LIC together are looking to sell a 60.72% stake in IDBI Bank, and the last date for submitting an Expression of Interest or preliminary bids is December 16. Transaction advisors have received a few requests for an extension of the deadline.
Since foreign investment bankers would not be working due to year-end holidays, the deadline would be extended, the official said.
"The deadline for submitting bids would be extended till early January," the official said.
The government on October 7 had invited bids for the EoI of IDBI Bank for which the last date is December 16. Both the government and Life Insurance Corporation hold 94.71% shares in the lender.
The government is looking to offload a 60.72% stake in the state-owned bank. The successful bidder will have to make an open offer of acquisition of 5.28% of the public shareholding.
Earlier, the Department of Investment and Public Asset Management had said the potential buyers should have a minimum net worth of Rs 22,500 crore and must report a net profit in three out of the last five years to qualify to bid for the bank. In addition, a maximum of four members would be permitted in a consortium.
Also, the successful bidder would be required to mandatorily lock in at least 40% of the equity capital for five years from the date of acquisition.
Shares of IDBI bank were trading at Rs 57 apiece, down 1.7% over the previous close.
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