IDBI bank privatisation creeps closer

Hello,

This week, the Government of India (GoI) was considering restructuring and merging Power Finance Corporation Ltd (the parent) and REC Ltd (its subsidiary) to create India’s largest power lender with a combined loan book exceeding ₹11-12 trillion, while achieving scale, efficiency, and streamlining infrastructure financing. 

Also, the privatisation of IDBI Bank crept closer as suitors such as Fairfax Financial Holdings, Emirates NBD, Kotak Mahindra Bank; get ready to submit their bids this week. As of now the government owns a 45.48% stake in it, alongside insurer LIC who owns the other half. The process is in its final stages and targeted to conclude by FY27. The successful bidder may rename the bank marking a major milestone in a privatisation effort of public lenders initiated in 2022.

Meanwhile, GoI may sell LIC via an FPO, divesting its 96.5% stake gradually to raise its public holding to 10%, a cautious roadmap laid out by the department that goes by the abbreviation DIPAM.

And finally it seems Bharat Petroleum Corp Ltd (BPCL)’s dedicated internal M&A team is scouting renewable acquisitions and investments in solar, wind, hydropower abroad. This will complement its domestic expansion target of 2GW renewable capacity by 2028. No specific targets or deals have yet been identified.

I hope you enjoy this week’s roundup – please connect on LinkedIn to discuss how Ideals VDR can help with your next M&A deal.

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