Bids invited from asset valuers for valuation of IDBI Bank assets
The Department of Investment and Public Asset Management (DIPAM), on behalf of government of India and LIC, wishes to engage the services of a reputed Asset Valuer Entity – registered with Insolvency & Bankruptcy Board of India (IBBI) — to act as the Asset Valuer for undertaking the IDBI Bank assets’ valuation and provide requisite assistance in the process of Strategic Disinvestment of IDBI Bank Limited, till the completion of the transaction.
All interested entities/parties, which meet the eligibility criteria as prescribed in the request for proposal and with desired experience in valuation, may submit their proposals, as per the guidelines mentioned in the RFP, for selection as the asset valuer.
Online submission of applications starts on 6 September and ends on 15 September. Bids would be submitted on 9 October 2023 and opening of bids will take place on 10 October.
The Indian government will divest 30.48% and LIC will sell 30.24% stake, aggregating to 60.72% of the equity share capital of IDBI Bank. The disinvestment will also lead to transfer of management control in IDBI Bank. LIC holds 49.24% while the GoI holds 45.48% in IDBI Bank as on March 31, 2023.
The asset valuer will work closely with Transaction Advisor and Legal Advisor appointed by DIPAM for this purpose during the entire course of assignment.
The process of determining the fair value/intrinsic value of the above-mentioned assets and liabilities would be determined using the following principles based on the relevant asset class – income approach, Market Approach or cost approach.
Assets that need to be valued include — investments (including investments in subsidiaries and associates and joint ventures and affiliates, as applicable), loans & advances, fixed assets and other assets, while Liabilities to be valued include deposits, borrowings and other liabilities and provisions.
The Asset Valuer should provide sufficient information in the valuation report to enable the reader to fully understand it, place reliance on the supporting data, reasoning, analysis, and conclusions underlying the Asset Valuer’s findings, opinions and conclusions indicating implication on final valuation both in quality and quantity.
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