IDBI Bank shares fall after Centre cancels bid process to hire valuer for disinvestment
The government is looking to strategically sell its 30.48 per cent stake in IDBI Bank, while state-run life insurance major Life Insurance Corp (LIC) will offload 30.24 per cent.
IDBI Bank shares suffered sharp losses on Wednesday after the government cancelled the bidding process to hire an asset valuer for the strategic sale-bound lender. The stock of the Mumbai-headquartered lender fell by as much as Rs 2.6, or 4.1 per cent, to Rs 59.7 apiece on BSE. A fresh request for proposal (RFP) will be invited soon after a review of some of the bid criteria to enable better interest from bidders.
"It has been decided with the approval of the competent authority to cancel the present RFP and to issue a fresh RFP for selection of an asset valuer for strategic disinvestment of IDBI Bank Ltd," the Department of Investment and Public Asset Management (DIPAM) said.
The government gave no reason for the move. Read more on Centre's move to cancel bid process to appoint valuer for IDBI Bank strategic sale
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Last week, DIPAM Secretary Tuhin Kanta Pandey said the IDBI Bank strategic sale transaction was "on course" but the transaction would not be completed in the current financial year.
The government is looking to strategically sell its 30.48 per cent stake in IDBI Bank, while state-run life insurance major Life Insurance Corp (LIC) will offload 30.24 per cent. Both together own about 95 per cent of IDBI Bank.
Last month, the government relaxed the criteria to appoint a valuer for the strategic sale after the conditions were found to be stringent. It had invited bids for such intermediaries on September 1.
With inputs from agencies