IDBI Bank rallies over 4% on LIC takeover buzz

Shares of IDBI Bank rallied over 4 per cent in early trade on Friday after an ETNow reported that the government was considering a proposal to sell over 40 per cent stake in the bank to Life Insurance Corporation of India (LIC).

LIC board has approved the ‘initiative’ to take a controlling stake in the bank, the report said quoting government sources.

“IDBI Bank’s 40-43 per cent stake sale is likely to yield government around Rs 10,000-Rs 11,000 crore,” ETNow said.


The scrip jumped over 4 per cent to Rs 60.15 at around 10.08 am (IST), while Sensex was down 59 points at 35,372 around the same time.

Shares of the lender opened at Rs 57.95 and touched an intraday high and low of Rs 61 and Rs 57.20 in trade so far.

The IDBI Bank board is scheduled to meet soon to draw capital raising plan for the next five years.

“The LIC board may take up the issue of majority control in IDBI Bank after government nod,” the report said. LIC is the largest public shareholders of the bank. The insurance behemoth held 10.82 per cent stake in IDBI Bank as of March 2018.