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 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 PSU banks/select listed public financial institutions.

The last day for putting in bids by merchant bankers is March 27.

"The Government 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 Public Sector Banks (PSBs), and select listed Public Financial Institutions (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.