Finance Ministry backs IDBI Bank sale valuation process
In short
The Finance Ministry defended the IDBI Bank stake-sale process and said the reserve price was not changed. It said the valuation method and bidding steps were checked and approved by the core group of secretaries on disinvestment. Fairfax’s Rs 81-a-share bid was said to be above the benchmark and fair-value estimates.
This matters because the sale affects the government and LIC. What is still not clear is whether the process ends the controversy over the deal.
What the reporting says
The Finance Ministry defended the valuation process for the IDBI Bank stake sale, saying the methodology and bidding procedure were reviewed and approved by the core group of secretaries on disinvestment. The summary says Fairfax’s Rs 81-a-share bid was above the benchmark and independent fair-value estimates, and that safeguards such as a double-blind process and limited tax indemnity were used. The immediate dispute over reserve price change remains, but the reporting does not state any final decision was altered.
Why it matters
The Finance Ministry said the IDBI Bank stake-sale valuation process was reviewed and approved, and that Fairfax’s Rs 81-a-share bid cleared the benchmark and independent fair-value estimates. It also pointed to safeguards including a double-blind process and limited tax indemnity. The reporting suggests the aim was to maximise value for the government and LIC, but it does not say whether the reserve-price dispute is fully resolved.