IDBI divestment on track, private sector must ensure fair dividends: DIPAM Secretary

The government’s strategic disinvestment of IDBI Bank remains firmly on course, with the Share Purchase Agreement currently under deliberation, according to the Secretary of the Department of Investment and Public Asset Management (DIPAM), Arunish Chawla.

“Financial bids will come when the time is right—we’re moving in line with the government’s decision,” he stated.

Despite volatile market sentiments, the Secretary emphasised the government is navigating these challenges with a calm and calculated approach. “We are calm while the waters are choppy,” he said, highlighting the meticulous planning that has gone into a unified disinvestment strategy backed by hard data and cross-departmental coordination.

Highlighting capital market activity, he indicated several public sector stocks are lined up to hit the markets over the course of the year. The broader goal, he noted, is to ensure the participation and protection of minority shareholders, including senior citizens and retail investors.

Despite representing just 10% of the total market cap, CPSEs accounted for a remarkable 23% of all dividends declared.

“We urge fund managers to include public sector stocks in their portfolios,” the Secretary said, underlining the role PSEs can play in wealth creation. At the same time, he nudged private sector companies to follow suit by declaring fair and consistent dividends to their minority shareholders.

“Together, we must make our stock markets a better, fairer place for the Aam Aadmi,” he concluded.