A key inter-ministerial group (IMG) is likely to meet today, Monday, July 7, to discuss the share purchase agreement (SPA) for IDBI Bank, sources said. The deliberations are expected to focus on finalising the draft SPA and other pending issues of the bank’s strategic disinvestment.Following the IMG discussions, it is expected that the draft SPA will come up for vetting by the Core Group of Secretaries on Disinvestment (CGD). The final nod will come from the Alternative Mechanism—a ministerial panel headed by the Finance Minister.
Only after this chain of internal clearances will the government move to the stage of inviting financial bids from shortlisted potential buyers.
The SPA is a pivotal document in the strategic sale process, defining the rights and responsibilities of the buyer and the seller. It typically includes clauses to prevent asset stripping, offers protection to employees post-disinvestment, and enforces a lock-in period of 3–5 years during which the buyer cannot exit.It may also spell out the exit options for the government and LIC, who together are divesting a 60.72% stake but will retain a combined 34%—with LIC holding 19% and the government 15%.As reported earlier by CNBC-TV18, SPA discussions are already at an advanced stage. Once the SPA receives final ministerial clearance, the government is expected to invite financial bids for IDBI Bank, possibly before the end of September.Also Read: IDBI Bank Q4 Results: Asset quality improves; dividend declaredFinance Minister Nirmala Sitharaman has stated that the disinvestment is expected to be completed in FY26.(Edited by : Sheersh Kapoor)
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