The last date to submit preliminary bids for the strategic sale of IDBI Bank has been extended till January 7. The government and LIC together are looking to sell a 60.72 per cent stake in the bank.

The government had invited bids from potential buyers in October and the last date for submitting an expression of interest (EoI) or a preliminary bid was December 16. In a notice, the Department of Investment and Public Asset Management (Dipam) said the last date for submission of the EoI is January 7 instead of December 16.

The last date for submission of physical copies of the EoIs has been extended to January 14, from December 23. As foreign investment bankers will not be working during the year-end holidays, the deadline has been extended, officials said. According to a government clarification, the central government will be allowing a consortium of foreign funds and investment companies to own over 51 per cent of stateowned IDBI Bank Ltd.

The Reserve Bank of India’s rules restrict foreign ownership in new private banks.

In reply to interested bidders’ queries, Dipam said the RBI’s residency criteria for promoters applies only to newly set-up banks and would not apply to an existing entity such as IDBI Bank. “The residency criteria would not apply to a consortium consisting of funds investment vehicle incorporated outside India,” the government clarification said. Following that, transaction advisers received requests for an extension of the deadline. The government and the Life Insurance Corporation (LIC) hold 94.71 per cent of IDBI Bank and are looking to offload 60.72 per cent in the state-owned bank. The successful bidder will have to make an open offer for acquisition of 5.28 per cent of the public shareholding.