The IDBI Bank stake sale is approaching a significant milestone, with financial bids expected to be submitted in the third quarter of FY26. The Indian government and Life Insurance Corporation (LIC) of India, the bank’s majority owners, are keen to divest their stake in the lender. The stake sale is expected to be one of the biggest banking transactions in the country.
The government and LIC together own around 94% of IDBI Bank, and the plan is to sell a majority stake to private investors. The sale process is being managed by the Department of Investment and Public Asset Management (DIPAM), which has already invited expressions of interest (EOIs) from potential bidders. Several prominent players, including private equity firms and banks, have shown interest in acquiring a stake in IDBI Bank.
The stake sale is expected to be completed through a competitive bidding process, with multiple rounds of bidding. The government and LIC are looking to raise a significant amount from the sale, which will help to boost the country’s economy. The exact valuation of the stake sale has not been disclosed, but it is expected to be one of the largest banking transactions in India.
The sale of IDBI Bank is part of the government’s broader plan to divest its stake in public sector enterprises and raise funds for developmental projects. The government has set a target of raising Rs 65,000 crore from disinvestment in the current fiscal year, and the IDBI Bank stake sale is expected to be a significant contributor to this target.
The sale process is expected to gain momentum in the coming months, with the submission of financial bids in the third quarter of FY26. The bidders will be required to submit their financial bids, which will be evaluated by DIPAM and other stakeholders. The winning bidder will be selected based on the highest bid price and other criteria, such as the bidder’s experience and expertise in the banking sector.
Overall, the IDBI Bank stake sale is a significant development in the Indian banking sector, and its outcome will be closely watched by investors, analysts, and policymakers. The sale is expected to have a positive impact on the country’s economy, as it will help to raise funds for developmental projects and promote private sector participation in the banking sector.