Reuters | | Posted by Aryan Prakash
India is seeking a valuation of around 640 billion rupees ($7.73 billion) for state-owned IDBI Bank Ltd, Bloomberg News reported on Friday, as part of the government’s stake-sale in the lender.
Earlier this month, India had invited bids for a 60.72% stake in the bank, which is 45.48% owned by the government and 49.24% by state-owned Life Insurance Corporation of India (LIC).
Potential investors, ranging from domestic and foreign banks to non-banking financial firms and private equity funds, have shown initial interest, the report said on Friday, citing a person familiar with the matter.
The bidders could get regulatory approvals and security clearances after November, according to the report.
IDBI Bank and the Government of India did not immediately respond to Reuters’ emails seeking comment.
The state-owned lender had a market capitalization of 482.2 billion rupees and the valuation India is reportedly pushing for would represent a premium of nearly 33% to Thursday’s closing prices.
IDBI Bank’s shares were up 1% at 45.45 rupees by 0521 GMT.
Reuters had reported earlier this week that the Indian government was in talks with the market regulator, seeking to relax a key public shareholding norm for the potential buyer of IDBI Bank to attract a larger pool of suitors.