The Ministry of Finance stated on 29 October 2026 that the strategic restructuring of IDBI Bank Ltd. involved a two-round bidding process. The Core Group of Secretaries on Disinvestment (CGD) determined the procedure for the second 'best offer' round after initial bids from the 2025-26 financial year were not approved. The government used independent agencies for valuations, which resulted in the bid discovered price increasing by Rs 3,917 crores. The Government of India and LIC will retain residual shareholdings to benefit from future value enhancement.
Key points
- Bid discovered price increased by Rs 3,917 crores
- Potential liability for disputed tax demands was Rs 627 crores
- Valuation methodology was reviewed by the CGD in April 2026
- GoI and LIC will retain residual shareholdings in IDBI Bank
- Process remained double blind: bidders did not know valuation and valuators did not see bids
When it applies
- initial bid round
- CCEA meeting approving disinvestment procedure
- CGD review of valuation methodology
- press note explaining bidding benchmarks
Who it affects
- IDBI Bank Ltd.