New Delhi: The Department of Investment and Public Asset Management (DIPAM) on Monday invited bids from merchant bankers to assist the government in its planned stake sale in public sector banks (PSBs) and listed financial institutions.
As per the RFP (request for proposal) floated by DIPAM, the merchant bankers would be empanelled for a period of three years (further extendable by 1 year) and they would advise the government on the timing and the modalities of the transaction for dilution of equity in select PSBs/select listed public financial institutions (PFIs).
The last day for putting in bids by merchant bankers is March 27.
“The Govt of India (GOI) intends to empanel BRLMs/MBSBs for a period of three years (further extendable by one year) in the context of dilution of GOI equity in select PSBs, and select listed PFIs (as defined under the Companies Act, 2013) using SEBI approved methods in accordance with the extant SEBI/RBI/IRDAI and Stock Exchanges regulations/ guidelines,” DIPAM said while inviting bids.
The merchant bankers can apply for empanelment with DIPAM under two categories, depending upon the capacity of the bidders in handling the capital market transactions. The empanelment category would be ‘A+’ for a transaction size of Rs 2,500 crore or more, and ‘A’ for transaction size of less than Rs 2,500 crore.
They would be required to conduct market surveys, domestic and international road shows to generate interest amongst prospective investors.
Arrange meetings with top management and the domestic and international investors including institutional and HNIs, facilitate communications about the growth potential of the entity and articulate the key marketing themes and positioning of the entity.
All expenses in this regard will be borne by the bankers except the tour and stay expenses of government and officials of the PSB/listed PFI, the DIPAM said.