•IDBI Bank's divestment, announced in 2016, continues to face delays, with recent bids likely to be rejected due to falling below the reserve price.
•Abizer Diwanji, NeoStrat Advisors LLP, highlights valuation as the key issue, with a significant gap between expected and offered prices despite known deal structure challenges.
•Harsh Vardhan notes the transaction's large size (over ₹40,000 crore) makes both buyers and sellers cautious, with buyers seeking safeguards for liabilities and future risks.
•Former RBI Deputy Governor SS Mundra points to the complex deal structure, where the government and LIC's differing priorities (fiscal goals vs. policyholder returns) complicate the sale of their combined 60.7% stake.
•The market price of IDBI Bank, trading at 1.8x book value, is higher than comparable deals (Yes Bank, RBL Bank at 1.1x-1.4x), suggesting the valuation expectation is the primary hurdle.
