Govt Defends IDBI Bank Sale Process, Says Best-Bid Round Followed Approved Procedure

The government has defended the IDBI Bank strategic stake sale process, saying the second or best-offer bidding round followed procedures approved by the Core Group of Secretaries on Disinvestment. The Finance Ministry said the initial bidding round was conducted under DIPAM's indicative guidelines, which allow flexibility for complex transactions. It clarified that bidders submitted confidential offers based on their own valuations, while two independent agencies conducted separate valuations without access to the bids. The government said the reserve price was neither increased nor reduced between rounds. It also said the final bid price exceeded the comparative valuation, adding Rs 3,917 crore to the transaction value.