The government on Friday invited a request for proposals (RFP) to hire property valuers for the strategic divestment of IDBI Bank.
“Department of Investment and Public Asset Management (DIPAM), on behalf of Gol and LIC, wishes to hire a reputable asset appraisal agency registered with the Board of Insolvency and Bankruptcy of India (IBBI) as an asset appraisal agency. assets and provide necessary assistance in the strategic divestment process of IDBI Bank Limited until the completion of the transaction. “
Interested parties can download tender documents from Friday. Bids can be submitted until October 9. Technical tenders will open in October. Shortlisted bidders will be invited to make presentations in due course, after which financial bidding will begin.
IDBI Bank is listed on NSE and BSE of India. In order to determine the value of IDBI Bank, the asset valuer must conduct a fair valuation of all assets and liabilities appearing on the balance sheet of IDBI Bank on the date stipulated and notified by DIPAM, “as where is the basis”.
According to the department, the property appraiser will work closely with the transaction advisor and legal counsel throughout the assignment. The appraiser must follow the three principles of income approach, market approach and cost approach for appraisal.
As of March 31, 2023, LIC holds 49.24% of IDBI Bank while the government holds 45.48% of IDBI Bank. A preliminary information memorandum (PIM) inviting expressions of interest (EOIs) was issued on October 7, 2022 in the strategic divestment of IDBI Bank. It was mentioned that the government will sell 30.48% stake and LIC will divest 30.24% stake, bringing the total to 60.72% with the transfer of management control of IDBI Bank.