The Department of Investments and Public Asset Management has invited bids to appoint an asset valuer for IDBI Bank Ltd.
The bids are expected to be submitted by Oct. 9, after which a suitable valuer will be selected, according to a document uploaded on the government's eProcure website. This is part of DIPAM's attempt to sell a controlling stake in IDBI Bank to a potential bidder.
The asset valuer will work closely with the transaction adviser and legal adviser appointed by DIPAM, the document said. The asset valuer is expected to employ the discounted cash flow mechanism to value the bank.
A bidder can either be a company, a limited liability partnership, or a partnership firm to be eligible for bid submission.
Other requirements include:
The minimum annual turnover for an eligible bidder has to be Rs 5 crore or above for each of the preceding three financial years.
The bidder shall have completed at least one such assignment involving assets of similar nature in the last five years to be eligible.
The bidder shall have conducted a land and building valuation in India worth Rs 2,500 crore or more in the last five years.
Any sub-contracting of the valuation exercise shall be allowed only for the land and buildings of IDBI Bank and not any other asset.
No consortium bids will be allowed.
According to the sale process shared by DIPAM, the government is looking to sell 30.48%, while Life Insurance Corp. of India is looking to offload 30.24% of its stake in IDBI Bank, along with the transfer of management control.
In January, the government received multiple expressions of interest from local and international bidders, BQ Prime reported. The list of potential bidders may have included Emirates NDB, Sumitomo Mitsui Banking Corp., Prem Watsa's Fairfax Holdings, Kotak Mahindra Bank Ltd., and Federal Bank Ltd.
The government has so far not commented on any developments in the sale process, while discussions with potential investors are ongoing.
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