Tue Feb 25 05:33:35 UTC 2025: ## India Seeks Advisors for Minority Stake Sale in Public Banks

**NEW DELHI, February 25, 2025** – The Indian government is inviting bids for merchant bankers and legal advisors to manage the sale of its minority stake in several public sector banks and financial companies. The move, announced Monday on the Department of Investment and Public Asset Management’s website, involves an offer for sale to meet public shareholding norms mandated by the Securities and Exchange Board of India (SEBI).

While the specific banks weren’t named in the announcement, previous reports indicated that Central Bank of India, Indian Overseas Bank, UCO Bank, and Punjab and Sind Bank are among the targets. The government currently holds a significantly large stake in these institutions (over 93% in some cases). The sale aims to reduce government ownership to comply with SEBI regulations requiring a 25% public shareholding, although a government exemption extends until August 2026.

This approach marks a shift from previous, more ambitious privatization plans, which were largely shelved due to ministerial opposition. The government is now focusing on minority stake sales instead, having already raised ₹86.25 billion ($993.2 million) through such sales in the current fiscal year. Successful bidders for the advisory roles will be appointed for a three-year term and must submit their bids by March 27. The government’s strategy leverages existing mechanisms like qualified institutional placements (QIPs) to gradually reduce its holdings in public sector banks.

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