The clarification came after the National Stock Exchange sought the bank’s response to a Business Standard report titled “Govt close to accepting sweetened Fairfax Financial offer for IDBI Bank” following movement in the bank’s share price.
In its filing, IDBI Bank said the proposed strategic disinvestment is being undertaken by the Government of India through a competitive bidding process and that the bank has no role in any negotiations.
“The proposed Strategic Disinvestment of IDBI Bank Limited is a confidential process being undertaken by the Government of India (GOI) and, hence, IDBI Bank is not in a position to either confirm or deny the referenced news report,” the bank said.
The bank also clarified that it has not received any communication from the government regarding the finalisation of any transaction under the ongoing disinvestment process. It added that it is not aware of any undisclosed price-sensitive information that could explain the recent movement in its shares and will promptly inform stock exchanges if it receives any material communication from the government.
IDBI Bank reiterated that the strategic sale process has been progressing through various regulatory milestones over the past few years. These include the Cabinet Committee on Economic Affairs’ in-principle approval in May 2021, the appointment of transaction and legal advisers in October 2022, the release and subsequent amendments to the Preliminary Information Memorandum, and SEBI approvals for the reclassification of the Government of India and LIC as public shareholders upon completion of the sale.
The lender further clarified that the news report relates to the government’s strategic disinvestment process and does not involve any regulatory or legal proceedings.
