Money Moves
IDBI Bank Sale: Reserve Price Rs 94.42, Fairfax Bid Rs 81
The Take
The Finance Ministry says IDBI Bank's reserve price was "neither decreased, nor increased". That's Rs 94.42. Fairfax won with Rs 81. The official in charge of the sale says that bid was "above the benchmark price" and above both valuers' estimates. The valuers put it at Rs 75.99.
The Wire
The Finance Ministry defended selling 60.72% of IDBI Bank to a Fairfax-controlled entity for Rs 52,878 crore, at Rs 81 a share, saying the reserve price was unchanged and its earlier bidding norms were only indicative, Business Today and Mint reported.
Why it matters
The government is selling control of a bank below the price it once set, and calls its own rules guidelines.
The receipts
Source: Business Today