The Ministry of Finance has clarified the procedure followed for the strategic restructuring of IDBI Bank Ltd. It stated that internal guidelines of the Department of Investment and Public Asset Management (DIPAM) are indicative rather than rigid rules, providing flexibility to carry out complex strategic transactions in a time-bound manner.
According to the ministry, independent agencies assess enterprise value contemporaneously to review confidential bids. Where financial bids fall below the reserve price, the Core Group of Secretaries on Disinvestment (CGD), empowered by the Cabinet Committee on Economic Affairs, determines the procedure. The ministry affirmed that the reserve price was neither raised nor lowered, and the initial round concluded after bids were not approved.
Valuations used comparable listed public sector banks alongside an asset valuation that indemnified disputed tax demands. The ministry noted this created a potential liability of ₹627 crore while lifting the discovered bid price by ₹3,917 crore, adding that the government and LIC retain residual stakes.
Source
Press Information Bureau, Government of India, “Clarification on the Process of Strategic Restructuring of the IDBI Bank Ltd.”. Read the original release.
Summary of an official release for general information only. Not investment advice. Read the original source before acting on any information.
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