22 august 2000

sidbi divestment held up on divestment price
new delhi: the industrial development bank of india (idbi), main promoter and 51 per cent stakeholder of small industries development bank of india (sidbi), failed to reach an agreement with banks and financial institutions on the final pricing of its stake in thus delaying the divestment process.

sbi caps, the merchant banker handling the deal, had fixed the price per share of sidbi at rs. 50. the eleven public sector banks, which participated in the meetings, felt that the more appropriate price for the sidbi shares was in the range of rs. 30 – 35.

although the government had announced the sale of the 51 per cent stake in sidbi over two years back, the actual process only began early this year after the idbi act was amended in the budget session of parliament.