IDBI Bank share price on Monday, October 10, zoomed over 10 per cent to hit the upper circuit in early trade on the back of divestment news. The government had on Friday invited bids for privatising IDBI Bank and said that it together with Life Insurance Corporation of India (LIC) will sell a total of 60.72 per cent stake in the financial institution.
On the NSE, the stock locked in an upper circuit limit of Rs 46.55 after gaining 10 per cent while on the BSE the scrip advanced nearly 9 per cent to trade at 46.40 apiece at 9:25 am.
In a notification dated October 7, the IDBI Bank informed that Government of India (GoI) and LIC will sell off a certain number of shares as a part of the disinvestment procedure which was disclosed on May 5, 2021.
While the government currently holds 45.48 per cent stake, LIC holds 49.24 per cent of the total equity share capital of the bank. The government is selling 30.48 per cent of shares and LIC is diluting 30.24 per cent stake which means an aggregate of 60.72 per cent of the equity share capital of IDBI Bank, along with transfer of management control in IDBI Bank.
“GoI currently holds 45.48% and Life Insurance Corporation of India (“LIC”) holds 49.24% of the total equity share capital of the Bank. It has now been informed that pursuant to the strategic disinvestment of IDBI Bank (i) GoI shall sell such number of shares representing 30.48% (thirty decimal four eight percent); and (ii) LIC shall sell such number of shares representing 30.24% (thirty decimal two four percent), aggregating to 60.72% (sixty decimal seven two percent) of the equity share capital of IDBI Bank, along with transfer of management control in IDBI Bank,” the notification read.
IDBI Bank stock has yielded a moderate return of 6 per cent in the last one month while it has delivered a negative return of over 2 per cent in 2022 so far. IDBI Bank share price 52-week range is Rs 65.25 – Rs 30.50.
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