The strategic disinvestment process for IDBI Bank could be further delayed. DIPAM (Department of Investment and Public Asset Management) Secretary Tuhin Kanta Pandey has said that it will not be possible for the process to be completed in the first half of the next fiscal. However, Pandey said the strategic disinvestment process of the Shipping Corporation of India (SC) is likely to be completed in the first half.

“Regarding IDBI Bank, there will be certain due diligence processes, and there will be a financial bid. And so I don’t think that it will be possible in the first half,” Pandey told businessline.

As of December 31, 2023, LIC holds 49.24 per cent, while the government has 45.48 per cent in IDBI Bank. In the strategic disinvestment of IDBI Bank, the preliminary information memorandum (PIM) for inviting expression of interest (EOI) was published on October 7, 2022. It was mentioned that the government will sell 30.48 per cent and LIC will divest 30.24 per cent, aggregating to 60.72 per cent, along with a transfer of management control to IDBI Bank.

Pandey said that there is an additional issue of fit and proper by the regulator, and that is under examination. “I believe that it is in advanced stages, and once it is completed, we will go for due diligence by the investors. They also take in a virtual data room in which they are able to look at the assets of the company more closely under the non-disclosure undertaking. Then we will invite them for financial aid,” he said, adding that he hopes that all of this will be concluded in the next financial year.

The process of strategic disinvestment has been delayed on many counts. Last year, in November, DIPAM made a second attempt to appoint an asset valuer for IDBI Bank, as the first one was cancelled due to a poor response. The due date for submission of bids was January 5. The date for the presentation by the short-listed bidder and the opening of the financial bid are yet to be announced.

Other CPSEs

When asked about the strategic disinvestment of Shipping Corporation (SCI), Pandey said that SCILAL (Shipping Corporation of India Land and Assets Ltd.) has to be listed. “The allocation of shares has to be done, and I believe within a month, it will be listed because the Maharashtra Government recently took the decision of stamp duty on demerger. And now I think the company is in the process of completing necessary changes in the land lease,” he said while adding that once these processes are over, a financial bid will be invited. So, the strategic disinvestment process is likely to be over in the first half.

The secretary ruled out making a fresh bid to sell Pawan Hans and Central Electronics Ltd. immediately. Meanwhile, he said that the process to sell HLL Lifecare Ltd is at an advanced stage.

Disinvestment Target

For the first time, there is no disinvestment target for FY25. However, the Finance Ministry has proposed an amount of ₹50,000 crore under the head ‘Miscellaneous Capital Receipts’ on account of the management of equity investments and public assets through various mechanisms.