The government's disinvestment plan of IDBI Bank, as part of broader plans to monetise assets through sale of stakes in the ongoing financial year, is proceeding as planned, Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla said in an interview with NDTV Profit.
In a unique interview to NDTV Profit, Chawla stated, "The focus is still on steady implementation and value creation for the long run regardless of vagaries in the global economic conditions."
The government, in conjunction with LIC, intends selling off a 60.72% stake in IDBI Bank where the government possesses 30.48% and LIC 30.24%.
Chawla explained that the government's objective is to achieve regulatory standards through structured divestment in public sector banks and central public sector enterprises.
He also mentioned that efforts to monetize MTNL's land and infrastructure assets were ongoing. A phased and market-responsive mode is being adopted to dispose of assets to meet minimum public shareholding norms, and disposals are being done in phased and market-responsive modes. Chawla informed that several bids already came in for important deals, such as sale of interests in public sector banks, and due diligence on the IDBI Bank deal is progressing smoothly.
To facilitate the disinvestment process, the government has provided time extensions to certain companies to comply with the Securities and Exchange Board of India's (SEBI) guidelines on public float.
Chawla reaffirms that the sale of IDBI Bank stake is proceeding as planned and is not impacted by general macroeconomic troubles. Describing the process as a strategic sale, he clarified that it is a multi-stage, multi-layered process. "A data room has been set up, and due diligence has been completed. Negotiations on the share purchase agreement are now underway," he added.
Regarding future dilution of stake of LIC, Chawla said that the government is planning to achieve the minimum level of public shareholding at the end of financial year 2026-27 as per the regulations of SEBI. Small-sized but regular offers for sale would be conducted by the government for giving liquidity and meeting the demand of retail investors. This practice will be followed like previous conventions, as large share offloadings have an adverse impact on share prices. Market analysts believe that the market's capacity to swallow shares needs to be factored in for any judicious stake sale.
For the financial year 2025-26, the Centre has fixed a target of Rs 47,000 crore for disinvestment and asset monetisation.
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