Why is IDBI Bank stock soaring today? Government receives fresh foreign bids for stake sale
Mumbai/IBNS: Shares of IDBI Bank surged more than 4 percent on Tuesday after reports said the government had received revised financial bids from two foreign bidders for the sale of its stake in the public sector lender.
The stock climbed 4.08 percent to touch an intraday high of Rs. 87.50 during the trading session.
Government receives revised bids
According to media reports, Fairfax Holdings and Emirates NBD have submitted revised bids to acquire the government's stake in IDBI Bank as the long-awaited privatisation process gathers pace.
Fairfax bid closer to reserve price
A report by NDTV Profit said Fairfax Holdings' revised offer is closer to the reserve price set by the government, potentially strengthening its position in the bidding process.
The revised bids are expected to play a key role in determining the future ownership of the lender.
Centre targets Rs. 50,000 crore
The government is aiming to raise Rs. 50,000 crore through the divestment of its stake in IDBI Bank, making it one of the biggest privatisation exercises in the banking sector.
Investors will closely monitor further developments in the bidding process, which could influence the bank's share price and the government's broader disinvestment programme.
The Centre, which holds a 45.48 percent stake in IDBI Bank, along with state-owned Life Insurance Corporation of India (LIC), which owns 49.24 percent, plans to jointly sell a 60.72 percent stake in the lender while transferring management control to the successful bidder.
The strategic sale process was first announced in October 2022, with several domestic and international investors expressing interest. However, the transaction has faced delays due to regulatory issues, valuation concerns, and changes in market conditions.
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