IDBI Bank shares rise nearly 8% to highest level in nine weeks on privatisation hope

IDBI Bank gains over 8% at record level since in nine weeks

Shares of IDBI Bank gained nearly 8 percent on March 21 with trading volume that double the 20-day average, extending the rise for a fifth session to its highest level in nine weeks.

IDBI Bank's divestment process is still in progress, and is expected to be finalized within the next three months, according to DIPAM Secretary Arunish Chawla. Speaking in an exclusive interview with Network18, Chawla had highlighted the key hurdles, including data room issues, have been resolved and due diligence has been completed.

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The government and LIC, together, are in the process of divesting a 61% stake in IDBI Bank, with the Centre holding 30.48 percent and LIC 30.24 percent. The disinvestment process had gained momentum after the Department of Investment and Public Asset Management (DIPAM) issued an Expression of Interest (EoI) in January 2023. Shortlisted bidders, post RBI scrutiny, were granted access to IDBI Bank’s financial data, paving the way for the next steps in the strategic sale.

IDBI Bank is also among lenders in focus ahead of the upcoming IPO of National Securities Depository Limited (NSDL), India’s largest depository. The Rs 3,000 crore public issue, set to launch in March, is an offer for sale (OFS) of up to 5.73 crore shares. IDBI Bank, along with Union Bank of India, State Bank of India, and HDFC Bank, is among the key selling shareholders in the issue, which could drive investor interest in these banking stocks in the near term.

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