KPMG India has been appointed because the transaction adviser for strategic divestment of IDBI Bank, and the agency will help the federal government within the sale for Re 1.
About 7 companies, together with KPMG, had bid to behave as transaction advisor for IDBI Bank strategic divestment. These had been Deloitte Touche Tohmatsu India LLP, Ernst and Young LLP, ICICI Securities, JM Financial Ltd, KPMG, RBSA Capital Advisors LLP and SBI Capital Markets.
KPMG positioned the bottom bid of Re 1, and was chosen because the transaction adviser, mentioned an official.
The near-zero bid may make KPMG one of many largest gamers in managing offers within the monetary companies house if IDBI Bank sale is successful, mentioned one other official.
KPMG’s presence in India is already robust and well-known within the monetary companies house, the agency mentioned in response to Business Standard’s queries. “With regards to the IDBI bank sale, DIPAM is running the process for selecting a transaction advisor. Hence we would refrain from commenting on the ongoing process,” KPMG mentioned.
Firms have been inserting near-zero bids to handle privatisation of huge public sector undertakings as a way to enhance their portfolios and set up credentials in respective sectors. Deloitte had not too long ago bid Re 1 to handle the privatisation of Bharat Petroleum Corporation (BPCL), and was appointed because the transaction adviser.
KPMG can be required to advise the federal government on the modalities and the timing of the strategic disinvestment of IDBI Bank, and put together a scheme to efficiently implement the sale. It should execute a non-disclosure settlement and supply acceptable info to bidders. Besides this, KPMG will finalise the sale course of by way of bidding or public sale, and help the federal government in fixing the reserve worth contemplating the valuation of IDBI Bank.
The authorities is trying to promote its 45.48 per cent shareholding in IDBI Bank. Life Insurance Corporation of India (LIC), which owns 49.24 per cent, may even offload its stake to switch administration management to the brand new purchaser.