Govt gets multiple preliminary bids for buying 61% stake in IDBI Bank

New Delhi: The government has received multiple preliminary bids for the strategic sales of about 61 per cent stake in IDBI Bank.

"Multiple Expressions of Interest received for the Strategic Disinvestment of Govt and LIC Stake in IDBI Bank," Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey tweeted.

The transaction will now move to the second stage in which the potential bidders will conduct due diligence before putting in financial bids.

The government and LIC together are looking to sell 60.72 per cent of IDBI Bank and had invited bids from potential buyers in October. The last date for submitting an Expression of Interest (EoI) or preliminary bids was set at December 16, which was later extended to January 7.

Currently, the government and the Life Insurance Corporation (LIC) hold 94.71 per cent in the lender. The successful bidder will have to make an open offer for the acquisition of 5.28 per cent of public shareholding.

Earlier, DIPAM had said that the potential buyers should have a minimum net worth of Rs 22,500 crore and must report a net profit in three out of the last five years to qualify to bid for the bank.

In addition, a maximum of four members would be permitted in a consortium. Also, the successful bidder would be required to mandatorily lock in at least 40 per cent of the equity capital for five years from the date of acquisition.

Shares of IDBI Bank on Friday closed at Rs 59.05, up 7.85 per cent over the previous close on the BSE.