New Delhi: The government has enlisted Goldman Sachs as the transaction advisor for divesting its stake in Indian Overseas Bank (IOB), Central Bank of India, UCO Bank, and Punjab & Sind Bank, said a person aware of the details. The Centre currently holds more than 90% in each of the four banks.
The global investment banking firm will be tasked with identifying potential bidders for the government's stake in these banks and structuring suitable deals to ensure smooth execution, the person said.
The stake dilution exercise, apart from signalling the Centre's commitment to disinvestment, will also help state-run banks meet the mandatory minimum public float norm.
State-run listed companies, including banks, have been granted an exemption from the 25% minimum public shareholding requirement until August 1, 2026. These exemptions have been granted periodically but the latest move signals the government's seriousness about compliance, analysts said previously.
The global investment banking firm will be tasked with identifying potential bidders for the government's stake in these banks and structuring suitable deals to ensure smooth execution, the person said.
The stake dilution exercise, apart from signalling the Centre's commitment to disinvestment, will also help state-run banks meet the mandatory minimum public float norm.
State-run listed companies, including banks, have been granted an exemption from the 25% minimum public shareholding requirement until August 1, 2026. These exemptions have been granted periodically but the latest move signals the government's seriousness about compliance, analysts said previously.
