JM Financial, Ernst and Young and Deloitte are among the seven firms that are in the bidding race for managing the strategic sale of IDBI Bank. The firms that are bidding to be transaction advisors will have to give a virtual presentation to the department of investment and public asset management (DIPAM), which is handling the sale process on August 10. These firms would make a virtual presentation before the Department of Investment and Public Asset Management, which is handling the sale process, on 10 August, according to a notice by Department of Investment and Public Asset Management (DIPAM). Deloitte Touche Tohmatsu India LLP, Ernst and Young LLP, ICICI Securities, JM Financial Ltd, KPMG, RBSA Capital Advisors LLP and SBI Capital Markets are the firms that have bid for acting as transaction advisor. Only one transaction advisor would be appointed by DIPAM or the strategic sale of IDBI Bank, in which the central government and LIC together own more than 94%. LIC currently having management control, has a 49.24 per cent stake, while the government holds 45.48 per cent in the bank. Non-promoter shareholding stands at 5.29 per cent. The exact quantum of stake dilution would be decided later.
The government in June invited bids from reputed professional consulting firms/ investment bankers/ merchant bankers/ financial institutions/ banks, for facilitating/ assisting DIPAM in the process of strategic disinvestment of IDBI Bank Ltd. along with transfer of management control, till completion of the transaction. The last date for bid submission was 13 July which was later extended till 22 July. The role of the Transaction Advisor would be required to advise and assist the government on modalities of disinvestment and the timing; recommend the need for other intermediaries required for the process of sale/disinvestment and also help in identification and selection of the same with proper Terms of Reference; preparation of all documents like Preliminary Information Memorandum (PIM), organize roadshows, suggest measures to fetch optimum value. The advisor would also be supporting IDBI Bank in setting up of the e-data room and assisting in the smooth conduct of the due diligence process, They will help position the divestment of GoI equity in IDBI Bank to organize roadshows and to generate interest among the prospective buyers.
The Cabinet in May had approved the strategic sale of the entire stake of the government and LIC in IDBI Bank Ltd. In response to queries received from potential transaction advisors in IDBI Bank, the DIPAM had last month clarified that since LIC's stake would be sold along with that of the government's, a single transaction advisor would manage the entire share sale process. The quantum of stake dilution would be declared before RFP (Request for Proposal) stage of the transaction.
留言