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IDBI Bank Privatization Bid Invitation Imminent
28 Oct
Summary
- IDBI Bank shares rise 8% on privatization bid news
- Government to finalize bidding process by October 31
- Centre and LIC plan to sell 60.72% stake to strategic investor
On October 28, 2025, shares of IDBI Bank rose 8% after reports that the government is likely to soon invite bids for a stake sale in the lender. According to government officials, the Department of Investment and Public Asset Management and the Department of Financial Services are expected to meet on October 31 to finalize and approve the bidding process.
The meeting is expected to clear the final draft of the Share Purchase Agreement (SPA), a key transaction document that will detail the buyer's obligations, the transfer of management control, and post-sale responsibilities. The approval of the SPA and the subsequent invitation of financial bids will mark the final phase of the long-awaited IDBI Bank privatization process that has been underway since 2021.
The Centre and the Life Insurance Corporation (LIC) currently hold a combined 94.71% stake in IDBI Bank and plan to sell 60.72% to a strategic investor, relinquishing management control. The move is part of the government's efforts to privatize state-owned enterprises and reduce its presence in the banking sector.
