IDBI Bank in limelight

Though IDBI Bank opened at the same levels as Tuesday at Rs.87.52, the stock soon soared to an intraday high at Rs.94, not too far from its 52-week high of Rs.98.70.

The stock rose on news that RBI has issued a ‘fit and proper’ report on its divestment process. 

The Govt holds 45.5% stake in the Bank. LIC holds much more than the Govt at 49%. The privatisation plan is to sell Govt’s 30.5% and LIC’s 30.2% stake – a total of 60.7%.

The timing, just before the Budget, is very significant. Hopefully, this time around, the Bank will get privatised after being on the shelf for so long.