Bank Converted: This government bank will be converted into a private bank, deal for purchase of shares got approval

Disinvestment of IDBI Bank has reached its final stage. Key regulatory approvals have been received for its disinvestment. After the final approval of the share purchase agreement, buyers may be invited for financial bids in September.

Bank Converted: IDBI Bank will soon be converted into a private bank. According to a media report, the process of disinvestment of IDBI Bank has reached its final stage. Its share purchase deal has also been approved by the Inter Ministerial Group. IDBI Bank shares today closed at Rs 95.44 with a gain of about one percent.

Financial bids are expected to be invited in September after the final approval of the share purchase agreement of IDBI Bank. The Central Government and Life Insurance Corporation (LIC) currently hold 95% stake in IDBI Bank.

When will the bidding take place

According to a report by Business Today, a senior official confirmed that the IMG held two meetings and recently approved the share purchase agreement. Now its disinvestment will be taken up by the core group of secretaries. After this, financial bids are expected to be invited, possibly in the first week of September.

The share purchase agreement is a legally binding document that outlines the terms and conditions under which a company’s shares are transferred from the seller to the buyer. In such disinvestment deals, the SPA plays an important role in protecting the interests of both parties and defining key clauses such as pricing, representation and liabilities.

Government has a big stake

Government and LIC Bank have a big stake in IDBI Bank. Government has set a target to raise Rs 40 thousand crore to Rs 50 thousand crore by selling stake in the bank. Under this disinvestment, 60.72 percent stake of IDBI Bank will be sold.

(Disclaimer: The information given here about the shares is not an investment opinion. Since, investment in stock market is subject to market risks, therefore, consult a certified investment advisor before investing.)

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