IDBI stake sale likely to be completed this fiscal: DIPAM secy

Mumbai: DIPAM Secretary Arunish Chawla on Thursday expressed hope of completing the IDBI stake sale this fiscal, as the qualified bidders have nearly completed their due diligence process.

Speaking to the media at the sidelines of the industry body Ficci-hosted annual Capital Market Conference here, Chawla also said the government has already collected Rs 20,000 crore in the first quarter itself against the Rs 47,000 crore asset monetisation target for the current financial year.

"Qualified interested parties have almost completed their due diligence process. All their questions and all their answers have been answered," Chawla said.

He further said that whatever data or details they needed, it has been provided to them, and whatever technical documents are there, they have been prepared.

"So, hopefully, this work will be completed by September, and by the end of this year, we hope that we will be able to do the main work, the main parts of it," Chawla added.

On the further stake sale in Life Insurance Corporation of India (LIC), the secretary said, "DIPAM, merchant bankers and LIC have formed an inter-ministerial group for this decision".

The government and LIC jointly own 95 per cent of IDBI Bank, of which 60.72 per cent stake is earmarked for the sale under the ongoing disinvestment programme.

"LIC's market value is around Rs 6 lakh crore. So, keeping in mind the liquidity of the market, transactions are designed according to that. And it is not appropriate to give any number in the form of a rumour in the middle of the market," he stated.

"The merchant bankers, who are experts in this, are working on this. And we will let them do their work, and we will make the right announcement at the right time," Chwala added.

"Against an asset monetisation target of Rs 47,000 crore, we have achieved Rs 20,000 crore in the first quarter," he said.

He also said DIPAM recorded the highest record dividend last year. "We hope to sustain and even improve it this year."