Shares of IDBI Bank, Central Bank of India, and Indian Overseas Bank (IOB) rose on February 25. The Department of Investment and Public Asset Management (DIPAM) invited bids from bankers and legal firms to help with divestment. The advisors will assist in reducing the government’s stake in these banks.
Advisors will be on board for three years, with a possible one-year extension. They will advise on equity dilution. The deadline for bids is March 27.
This plan aims to boost public participation in state-owned enterprises. It also seeks to improve liquidity. The government’s goal is to meet the 25% public shareholding requirement.
Shares of IDBI Bank, Central Bank of India, and IOB gained value in a weak market, showing investor optimism.
