Government invites bids for asset valuer for IDBI Bank disinvestment

livemint.com:

IDBI Bank. The government and the LIC are selling about 61% stake in IDBI Bank and multiple expressions of interest (EoI) for the same have been received. The Department of Investment & Public Asset Management (DIPAM), on behalf of the government and LIC, on Monday floated a request for proposal (RFP) to engage a “reputed Asset Valuer Entity -registered with Insolvency & Bankruptcy Board of India (IBBI), to act as the Asset Valuer for undertaking the IDBI Bank assets' valuation and provide requisite assistance in the process of strategic disinvestment of IDBI Bank, till the completion of the transaction." “The contract (of asset valuer) in respect of the assignment shall be initially valid for a period of 3 (three) years from the date of issue of appointment letter and shall be extendable by 1 (one) more year on existing terms and conditions," the RFP said.

October 9 is the last date to submit bids. In May 2021, the cabinet committee on economic affairs (CCEA) had approved strategic disinvestment of The government and LIC's equity, along with transfer of management control, in IDBI Bank. The asset valuer would be required to value IDBI Bank's investments (including investments in subsidiaries and associates and joint ventures and affiliates, as applicable); loans & advances; fixed assets and other assets, said the RFP.

The asset valuer shall also have to work closely with transaction advisor and legal advisor appointed by DIPAM. IDBI Bank's liabilities include deposits, borrowings and other liabilities and provisions. In October 2022, DIPAM had invited EoIs for selling 30.48% stake in IDBI Bank, along with 30.24% stake of LIC.