• IDBI Bank will now be private


• Kotak Mahindra Bank leads the buying spree


• Crores battle for 61% stake

IDBI Bank: IDBI’s privatization race is heating up. Investors are vying for a 61% stake. IDBI Bank is now going private and Kotak Mahindra Bank is the lead buyer for it. IDBI New discussions have started regarding the bank’s privatization process. According to a report, after a long wait, Kotak Mahindra Bank has joined the race to sell its stake.

According to reports, apart from Oaktree Capital and Fairfax, Kotak Mahindra Bank has also shown interest. However, it is worth noting that Kotak Mahindra Bankhas not officially confirmed or denied this development. The report details the major concerns of the applicants, noting that the biggest issue is IDBI Bank’s large market share. With a market capitalization of Rs 1 lakh crore, it will be difficult for investors to buy a 60 per cent stake in this entity. However, the report also said that due to the benefit of equity currency, Kotak Mahindra Bank may consider a part equity and part cash merger deal.

The central government had earlier said that it is planning to finalize the privatization of IDBI Bank by the end of the financial year 2026. Central government holds 45.48% stake in IDBI Bank, while Life Insurance Corporation of India holds 49.24% stake. The investment and public asset management department has been tasked with selling the 61% stake in the bank.

According to a report, India has completed most of the formalities for the IDBI Bank stake sale and plans to call for bids between October and December. According to the country’s disinvestment secretary, this could happen as early as this month. The sales process for 2022 was initially announced.

There is talk that Kotak Mahindra Bank has shown interest in the process of privatization of IDBI Bank. Kotak is also in the race along with Oaktree and Fairfax and the government is all set to complete the 61% stake sale by FY2026. Therefore, the attention of investors is close to this.