The Centre has called off the disinvestment process for IDBI Bank after bids did not meet expectations, government sources told NDTV Profit on Friday.
The sale has been halted as the two bids from Fairfax, Emirates came in below Reserve Price, the sources added.
NDTV Profit had earlier reported delays in the selloff caused by impact of Iran conflict on disinvestment pipeline. People in the know had said that the government will proceed with the strategic sale of IDBI Bank with caution.
Under the proposed transaction, the government planned to divest a 30.48% stake in the Bank, valued at around Rs 36,000 crore at current market prices.
In addition, Life Insurance Corporation of India (LIC) was planning to sell a 30.24% stake, taking the total stake on offer to 60.72%, with an estimated combined valuation of nearly Rs 72,000 crore.
The disinvestment process had been in motion since Jan. 7, 2023, when the Department of Investment and Public Asset Management (DIPAM) received multiple expressions of interest from potential bidders.
As far as disinvestment proceeds was concerned, the Centre had not set a separate target for disinvestment. Proceeds from stake sales were now accounted for under the broader category of "miscellaneous capital receipts."
With both the government and LIC exiting a controlling stake, the IDBI Bank transaction was expected to be among the largest banking-sector privatisations in India.
As of March 9, the Central Public Sector Enterprises dividend receipts stood at Rs 70,577 crore, while the disinvestment receipts were seen at Rs 15,562 crore. The asset monetisation receipts stood at Rs 18,837.42 crore.
The government had set Rs 47,000 crore capital miscellaneous receipts target for fiscal 2026. The Centre pegs CPSE dividend receipts at Rs 71,000 crore in fiscal 2026 RE.
So far the Central Public Sector Enterprises dividend receipts stands at Rs 70,577 crore, while the disinvestment receipts are at Rs 15,562 crore. The asset monetisation receipts stood at Rsd 18,837.42 crore.
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