Blitz Bureau
NEW DELHI: The Government’s disinvestment plan for IDBI Bank, as part of the broader strategy to monetise assets through stake sales during the current financial year, is progressing in accordance with the normal schedule, the Department of Investment and Public Asset Management Secretary Arunish Chawla has said.
“The focus remains on steady execution and long-term value creation, even as global economic conditions remain uncertain,” Chawla told NDTV Profit in an interview. The Centre and the Life Insurance Corporation of India (LIC) plan to jointly offload a 60.72 per cent stake in IDBI Bank, which comprises 30.48 per cent held by the Government and a 30.24 per cent share by the insurance giant.
Chawla said that the Government aims to meet regulatory norms through structured divestments in public sector banks and central public sector enterprises. He also said efforts to monetise land and infrastructure assets of MTNL were continuing and confirmed that a flexible approach was being adopted to meet minimum public shareholding targets.
Chawla said that asset sales will be carried out in a phased and market-sensitive manner. He noted that multiple bids have already come in for key transactions, including public sector bank stake sales, and that due diligence is progressing on the IDBI Bank transaction. The Government has also extended deadlines for some companies, that have been lined up for disinvestment, to comply with the Securities and Exchange Board of India’s (SEBI) public float rules, he said.
Chawla said the stake sale in IDBI Bank is proceeding as planned and is not affected by broader macroeconomic shocks. He described it as a strategic sale taking place through a multi-stage and multi-layered process. “A data room has been set up, and due diligence has been completed. Negotiations on the share purchase agreement are currently underway,” he said.
