Kotak Mahindra Bank on Saturday said it has not submitted a financial bid as part of the ongoing disinvestment process relating to IDBI Bank Ltd., issuing a clarification after recent media reports on the matter, via a filing send to the exchanges on Saturday.
The filing is in response to previous reports stating that Kotak Mahindra Bank and Fairfax Holdings were part of the bidders vying for the Centre's stake in IDBI Bank.
These financial bids were solicited by the government for the strategic disinvestment in their shareholding in the bank, with the winning bidder to be announced by the end of March 2026. The final closure of the transaction may extend beyond the current fiscal.
Under the proposed transaction, the government plans to divest a 30.48% stake in IDBI Bank, valued at around Rs 36,000 crore at current market prices. In addition, Life Insurance Corporation of India (LIC) will 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 has 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.
Notably Emirates NBD announced its intention to acquire up to a 60% stake in RBL Bank for around $3 billion (about Rs 27,000 crore). As of now, market analysts state that Emirates NBD is no longer viewed as a likely contender for IDBI Bank.
Regarding the disinvestment proceeds, the Centre has not set a separate target for disinvestment. Proceeds from stake sales are now accounted for under the broader category of "miscellaneous capital receipts." In the current fiscal, disinvestment proceeds have amounted to Rs 8,768 crore.
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