The expression of interest exercise for the government’s stake sale in IDBI Bank has been completed, and due diligence is currently underway, said Department of Investment And Public Asset Management Secretary Arunish Chawla, in an exclusive interview to NDTV Profit.
Government is hoping to invite bids for IDBI Bank stake sale by the third quarter of this fiscal, Chawla had said earlier this month.
The DIPAM Secretary confirmed that transaction documents are being finalised, while refraining from sharing deal-specific details.
On public sector unit (PSU) delisting, the official said the government will continue efforts to pare down holdings in companies where its stake is above 70%.
We review these things every month, and merchant bankers in most of these have already been appointed, he noted. Any new PSU delisting is under consideration and a final decision is expected to be announced by the end of the year.
The Secretary also addressed the issue of a potential minority stake sale in Life Insurance Corporation of India (LIC). He said the matter will be handled through a consultative process involving SEBI, LIC, and other stakeholders.
LIC’s market cap is over Rs 5.6 lakh crore. An inter-ministerial group is there for this, and investment bankers are working on it. A number or transactional details cannot be shared right now, he added.
When asked about his views on a more fair way of profit sharing by private companies with the government, Chawla mentioned that the private sector should be left to decide for itself. It is the public enterprises that are our role models, he said.
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