- Inter-ministerial group has cleared the way for IDBI Bank stake sale bidding process
- Centre to invite financial bids for 60.7% stake sale in IDBI Bank within a week
- Share purchase agreement approved and bid invitation may be on DIPAM website soon
The government's inter-ministerial group has cleared all the decks for the biding process of IDBI Bank's stake sale, people in the know told NDTV Profit on Friday.
The Centre is likely to invite financial bids for the stake sale within a week, the sources said.
Final draft of the share purchase agreement has also been approved, and invitation for financial bids could be uploaded on the Department of Investment and Public Asset Management or DIPAM website shortly.
Last week, sources had informed that the successful bidder for the stake sale is likely to be announced by March-end. The Centre and the Life Insurance Corporation of India will jointly sell 60.7% stake in the lender.
As of the quarter ended September 2025, the Government of India held 45.48% in IDBI Bank, whereas the LIC owned another 49.24%. This took their combined ownership to 94.71%.
Notably, the IDBI Bank disinvestment process was first announced in 2022. The plan gained pace this year, with sources telling NDTV Profit in November that Kotak Mahindra Bank is likely to be the frontrunner in acquiring the government's stake.
IDBI Bank's market cap of over Rs 1 lakh crore makes it difficult for investors to buy 60% stake in the lender, the sources had said. But Kotak Mahindra Bank, with the benefit of equity currency, may look at part-cash and part-equity merger deal to buy the lender, they added.
Earlier, Emirates NBD and Fairfax were seen as primary suitors for IDBI Bank and had even conducted the due diligence process. However, in October, Emirates NBD announced it will infuse $3 billion to acquire a majority stake in RBL Bank.
Back in June, the persons in the know had told NDTV Profit that the share purchase agreement—which outlines the sale terms—had been cleared by an inter-ministerial group. A confidential reserve price will be set for the transaction, with the Centre expecting to raise Rs 40,000–Rs 50,000 crore from the sale, they added.
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