IDBI Bank (Pradeep Gaur/Mint via Getty Images)The Government's ambitious push to disinvest its holding in IDBI Bank has gained pace as it has shortlisted seven international firms to serve as transaction advisers, reports Economic Times.
As per a notice put out by DIPAM, those shortlisted for the task include Deloitte Touche Tohmatsu India, Ernst & Young, KPMG, JM Financial, ICICI Securities, RBSA Advisors and SBI Capital Markets. The firms will now make presentations before DIPAM on 10 August following which one final firm will be selected.
The Government holds a 45.48 per cent stake in IDBI Bank, along with the state-owned insurance sector behemoth LIC of India which holds 49.28 per cent stake in the bank as a promoter.
The Cabinet Committee on Economic Affairs has already accorded its in-principle approval for the strategic divestment of IDBI Bank in May this year, which includes giving up management control.
It should be noted that the public sector banks have been barred by DIPAM from partaking in the process to acquire IDBI Bank. It has also barred a person or company owning more than 50 per cent equity interest in the merchant banker or controlling the merchant bankers from participating in the competitive process for acquisition of IDBI Bank.
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