NEW DELHI - The Indian government has decided to cancel the current request for proposal (RFP) process for selecting an asset valuer for the strategic sale of IDBI Bank, due to insufficient bidder participation. Officials announced today that the process will be restarted with a revised RFP aimed at attracting more bidders.
This move follows an earlier statement by Tuhin Kanta Pandey, Secretary of the Department of Investment and Public Asset Management (DIPAM), acknowledging that despite ongoing efforts, the transaction would not conclude within the current fiscal year. The initial RFP, released on September 1, had its deadline extended from October 9 to October 30 in hopes of receiving adequate responses.
The role of the asset valuer is critical in the strategic sale, involving the assessment of both tangible and intangible assets. IDBI Bank's significant assets include those in seven major cities, which contribute substantially to the depreciated value of its fixed assets. These include non-balance sheet items such as trademarks and rights to property titles.
Following the strategic sale, the Indian government intends to retain a 15% stake in IDBI Bank, while the Life Insurance Corporation of India (LIC) will continue to hold a 19% stake. The decision to terminate the current bidding process was made after receiving only a single bid under the initial terms.
DIPAM has now approved a review for enhanced bidder engagement and expects to issue a new RFP shortly.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.