Stake Sale
Govt invites bids from merchant bankers for divest in PSU banks, fincl cos
This story was originally published at 17:11 IST on 24 February 2025
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--Govt invites bids from merchant bankers for PSU banks' stake sales
--Govt invites bids from merchant bankers for few PSU fincl cos' stake sales
NEW DELHI – The disinvestment department has invited initial bids for the empanelment of merchant bankers-cum-selling brokers for dilution of government stake in select public sector banks and public financial institutions, according to a notice issued by the department Monday. The government has also separately invited bids to select legal advisers for stake sale in state-owned banks and financial institutions.
The merchant bankers and the legal advisors will be selected for three years, with an option to extend by one more year. A merchant banker should have a minimum net worth of at least INR 25 billion to bid, the department said. The department also said merchant bankers cannot bid as a consortium.
The last date to submit bids for the merchant bankers and the legal advisors is Mar. 27. The merchant banks should have a valid brokering license issued by the Securities and Exchange Board of India, while legal advisers should be domestically or internationally reputed legal firms with experience in public offerings in the capital market.
The finance ministry had asked five public sector banks to increase their minimum public shareholding to 25% by Aug. 1, 2026. According to the Securities Contract (Regulation) Rules of SEBI, all listed companies, including the public sector units, must have a minimum public shareholding of 25%.
The government currently holds a 98.3% stake in Punjab & Sind Bank, 96.4% in Indian Overseas Bank, 95.4% in UCO Bank, 93.1% in Central Bank of India and 86.5% in Bank of Maharashtra. End
Reported by Priyasmita Dutta
Edited by Saji George Titus
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