IDBI Disinvestment: IDBI Bank's disinvestment process is on track, government denies reports of postponement
There has been no impact on the process of IDBI Bank Disinvestment. It has proceeded according to due process. The news of postponing the process of disinvestment of the bank was denied by the government on Friday.
Deepam's secretary did this tweet
A fresh tweet in this regard was made from the official Twitter handle of the Secretary, Department of Disinvestment and Public Asset Management (DIPAM). It was said in the tweet, there are reports in a section of the media about the postponement of the process of disinvestment of IDBI Bank, which is misleading and baseless. The deal is progressing as per the due process and several EOIs have been received for this.
This claim was made in the news
Deepam Secretary issued this rebuttal when it was said in several media reports that the Central Government may postpone the process of disinvestment of IDBI Bank. It was being said in the news that the government is apprehensive of potential buyers backing out due to the ongoing turmoil in the market.
The government expects this from the deal
The government is trying to sell its 30.48 per cent stake in IDBI Bank. Apart from this, the government insurance company Life Insurance Corporation of India will also sell its 30.24 per cent stake in the bank. At present, the government holds a 45.48 per cent stake in IDBI Bank, while LIC holds a 49.24 per cent stake in the bank. The government is hoping to raise $4 billion from this disinvestment.
The stake will remain
DIPAM manages the government's stake in public sector undertakings. In October last year, the department invited EOIs from interested parties to sell the government's 30.48 per cent stake and LIC's 30.24 per cent. At present, the government and LIC together hold a 94.72 per cent stake in the bank, which will come down to 34 per cent after disinvestment.