The Center reportedly approached global buyout funds and financial institutions, such as the Carlyle Group, TPG Capital and love-controlled Fairfax Holdings, to gauge investor interest in buying a majority stake held directly by the Center government. and the (bailout) lender. , investment banking and private equity officials familiar with the matter told “Economic Times.”
The Department of Investment and Public Assets Management (DIPAM), which oversees the administration of public funds in the operating companies, has appealed for buyout funds and lenders on roadshows. ‘investors organized in several global banking centers, at events such as Industry Sources who participated in the said.
One of the people associated said: “The talks are at an early stage and the government has not yet set a deadline for the sale of the shares.” “However, buyout funds and some country-linked strategic investors have been excluded.”
In addition to this, KPMG is contributing to the deal process and the proposed divestiture of government shares in the bank has reportedly received central bank approval.
DIPAM officials in New Delhi could not immediately be contacted for their reactions. Additionally, Carlyle, TPG and KPMG also declined to comment on the report. IDBI Bank and LIC also did not comment on the matter.
Global private equity firms are exploring the possibility of partnering with local strategic investors to create bidding entities. However, they can also form a consortium with other investors.
The Expression of Interest (EOI) issuance process will be followed by formal tender stages. If current stock market momentum continues, the process should begin this year.
The central government and LIC together own more than 94% of the bank’s capital. The US stake in the bank, which had the highest proportion of bad debts, is valued at over Rs 41,000 crore at current market prices.
