Indian officials are considering changes to revive buyer interest in the sale of a controlling stake in IDBI Bank, after the latest attempt to privatise the lender stalled, reported Bloomberg.
Among the measures being examined is a cut of up to 20% in the reserve price, after prospective buyers were unwilling to proceed in the last round, which was called off in March
Officials are also working on ways to structure the transaction so that the valuation reflects the bank’s underlying worth rather than depending too heavily on the market price of its shares, the sources said. The discussions are at an early stage, and the approach may still change, the people added. Bids for IDBI Bank were withdrawn after they did not meet the minimum threshold set by the government.
Fairfax Financial Holdings had emerged as the leading contender for the stake, while Emirates NBD PJSC was also among the bidders. Officials have signalled that they want to reopen the process with parties that had already shown interest, including Fairfax, the news publication added. Finance minister Nirmala Sitharaman said in April that the divestment would continue.