IDBI Bank shares rallied nearly 8 percent on March 21 with trading volumes double the 20-day average, pushing the stock to a nine-week high for the fifth consecutive session.
According to DIPAM Secretary Arunish Chawla, the disinvestment process of IDBI Bank is still on and is expected to be finalised in the next three months.
In an exclusive interview with Network18, Chawla informed that major hurdles, including data room issues, have been resolved and due diligence has been completed.
The government and LIC together are in the process of selling 61% stake in IDBI Bank, with the Centre holding 30.48 percent and LIC holding 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 were given access to IDBI Bank’s financial data after RBI’s scrutiny, paving the way for the next steps in the strategic sale.
IDBI Bank is also in focus ahead of the upcoming IPO of India’s largest depository National Securities Depository Ltd (NSDL). The Rs 3,000-crore public issue, scheduled to be launched in March, is an offer for sale (OFS) of up to 5.73 crore shares.
IDBI Bank is one of the major selling shareholders in the issue along with Union Bank of India, State Bank of India and HDFC Bank, which could increase investor interest in these banking stocks in the near future.