IDBI Bank share price rose as much as 4% on NSE in Tuesday’s trading session after report revealed that government received revised financial bids from two foreign bidders for the proposed stake sale in the lender.
The stock opened at ₹85 apiece today, as compared to previous close of ₹84.07 on Monday. IDBI Bank shares touched an intraday high of ₹87.63 apiece on 14 July.
IDBI Bank govt disinvestment details
According to a Reuters report, India has received revised bids from Canada’s Fairfax Financial and Dubai-based Emirates NBD for the sale of its stake in IDBI Bank, with the divestment process expected to be completed within the next month.
Bids for the stake sale are currently under evaluation, with a high-level panel of bureaucrats meeting on Monday to review the process. Under the proposed transaction, the central government and state-owned Life Insurance Corporation of India (LIC) are jointly selling a 60.7% stake in IDBI Bank.
The Indian government holds a 45.48% stake in IDBI Bank, while LIC owns 49.24%. The finance ministry, IDBI Bank, LIC, Fairfax, and Emirates did not immediately respond to requests for comment.
Earlier on Tuesday, Bloomberg News reported that Fairfax had emerged as the frontrunner to acquire the stake. The divestment process was restarted this month after bids received in March fell short of the government’s minimum price expectations.
Reuters had earlier reported that the government had put the stake sale on hold after the bids received failed to meet its valuation expectations. The Indian government and LIC had initiated the divestment process in 2022.
IDBI Bank share price trend
IDBI Bank share price trend has remained volatile amid weak market sentiments. The banking stock has gained 3.35% in a week and 14.27% in a month.
Furthermore, IDBI Bank shares have declined 17% on year-to-date (YTD) basis and 14% in a year.
However, the stock has delivered 51% returns in three years and 128% in five years.
(With inputs from agencies)
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