IDBI Bank shares sharply higher as Government seeks asset valuer for divestment

Shares of IDBI Bank jumped nearly 7 percent in trade on September 4, post the invitation of bids by the government for strategic divestment of the bank.

At 11:51 am the IDBI Bank stock was trading 6.75 percent higher at Rs 64.95 on NSE.

Details of the invitation of bids by the Government

The Central Government has invited bids to appoint an asset valuer for strategic divestment of the bank. The bids will have to be submitted by October 9. The asset valuer will give fair value of assets & liabilities of the bank. Bank’s investments, loans & advances, deposits, borrowings, and other liabilities will be considered for valuation.

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The Indian government is looking to offload its 30.48 percent stake in IDBI Bank, while Life Insurance Corp (LIC) of India will sell a 30.24 percent shareholding. Presently, the Indian government and LIC collectively own about 95 percent of IDBI Bank.

IDBI Bank Shareholding Pattern

Promoters own 94.71 percent stake in the development finance institution. Followed by the Public which owns 4.83 percent of the stake. FIIs and DIIs own the remaining 0.3 percent and 0.16 percent stake respectively.

IDBI Bank Stock Performance

IDBI Bank stock has given a return of 29.98 percent over the past six months. The Nifty Bank index has given a return of 7.50 percent over the same duration.

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