Synopsis: During Tuesday’s trading session at noon , the shares of this bank gained more than 8% as reports about Government of India and Life insurance corporations are likely to sell their stake through bids.
The shares of this bank which is engaged in the business of Monetary intermediation of commercial banks, saving banks, postal savings banks and discount houses,jumped as the report about the centre likely to sell its stake in the bank through invite bids spread in the market .
With the market cap of Rs 1,09,700 crore , the shares of IDBI bank ltd skyrocketed more than 8% and made a high of Rs 104.1 compared to its previous day closing price of Rs 95.87 . The shares are closing towards their 52 week high of Rs 106.34. IDBI bank has given a return of 126% over the last 3 years.
About the stake sale.
Around 94.72 % stake of IDBI is held by Life Insurance Corporation of India (LIC) (49.24 per cent) and Government of India (GoI) (45.48 per cent) which both have stated the intent to divest their stake through invite bidding so that the management could be handed over.
The average trading volume on the counter jumped over eight-fold with 7.6 crore equity shares, representing 13.4 per cent of total free-float equity of IDBI Bank, having changed hands on the NSE (7.4 crore shares) and BSE (56 lakh shares).
Department of Investment and Public Asset Management and Department of Financial Services officials are expected to have a meeting on October 31 to finalise and approve the bidding process.
The meeting is expected to clear the final draft of the Share Purchase Agreement (SPA) – a key transaction document detailing buyer obligations, transfer of management control and post-sale responsibilities – and set the timeline for inviting financial bids from shortlisted investors.
Financials and others.
The Revenue from operation for the company stands at Rs 7,109 crore in Q2 FY26 compared to Q2 FY25 Rs 7,445 crore which is a decrease of 4.7 percent YoY basis . Similarly, the net profit stood at Rs 3,241 crore in Q2 FY26 from Rs 1,869 crore in Q2 FY25 giving a growth rate of 73 percent. The shares are trading at 11.8 PE which is below its median PE of 16.5.
IDBI Bank is a major commercial bank in India that has evolved from being the country’s top development finance institution, playing a key role in national development. The bank aims to be the most preferred and trusted financial partner for all its customers, always working to increase value for them. Its business size has successfully crossed the significant milestone of ₹5 lakh crore, showing strong growth in both deposits and loans.
Written by Leon Mendonca.
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