IDBI Bank shares surged nearly 20% on Wednesday, 17 June, amid reports that the government is exploring options to revive the long-pending privatisation of the lender.
According to a news report, the Centre is evaluating ways to restart the disinvestment process, including the possibility of reconsidering bids submitted by Prem Watsa-led Fairfax Financial Holdings and Emirates NBD. The bids were earlier rejected after failing to meet the undisclosed reserve price, sources familiar with the matter told the publication.
The report said the bids remain “alive” and the government is examining legal provisions under the tendering framework that could allow acceptance of offers below the reserve price under certain circumstances.
While the reserve price has not been made public, a decision is expected soon as the government looks to strengthen its non-tax revenue collections. A senior government official cited by The Economic Times said all options remain under consideration, noting that the privatisation process was never formally scrapped despite the financial bids falling short of expectations.
As part of the sale process, the successful bidder will be required to undergo a final assessment by the Reserve Bank of India (RBI) to ensure compliance with the regulator’s ‘fit and proper’ criteria. The transaction will also require approvals from relevant statutory and regulatory authorities, including the Competition Commission of India (CCI).
In addition, the winning bidder will have to make an open offer to minority shareholders in accordance with applicable takeover regulations.
More stake sales on the horizon
The Government of India will sell up to a 5% stake in General Insurance Corporation of India (GIC Re) through an Offer for Sale (OFS), according to the Department of Investment and Public Asset Management (DIPAM). The OFS will open for non-retail investors on 16 June, while retail investors and eligible employees will be able to participate on 17 June.
The stake sale forms part of the Centre’s broader disinvestment and asset monetisation strategy aimed at enhancing public shareholding in central public sector enterprises and generating additional revenue for the exchequer.
The government is also pursuing several other key divestment initiatives. These include the proposed strategic sale of IDBI Bank, which remains under consideration, and a potential future stake dilution in Life Insurance Corporation of India (LIC) to comply with minimum public shareholding norms and expand investor participation in the insurer.
IDBI Bank share price today
IDBI Bank share price today opened at an intraday low of ₹77.22 apiece on the BSE, and the stock touched an intraday high of ₹92.44 per share.
According to Sudeep Shah – Head of Technical and Derivatives Research at SBI Securities, IDBI Bank had been consolidating within the 74.49–68.20 range since 8 April before breaking out of this zone today, supported by a sharp surge in volumes. The breakout is supported by improving momentum indicators, with the RSI rising sharply, signalling renewed bullish strength.
“The ADX indicator also paints a positive picture, as the DI+ line has widened and remains well above the DI-, reflecting strong bullish dominance. Additionally, the MACD has moved above the zero line with rising green histogram bars, indicating strengthening momentum. While some profit booking after the sharp rise cannot be ruled out, the uptrend is likely to remain intact as long as the stock sustains above 80,” said Shah.
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