IDBI Bank surges 5% on govt stake sale report

NEW DELHI: Shares of IDBI Bank jumped nearly 5 per cent in Wednesday’s trade amid reports that four bidders were looking to acquire a part of the government’s stake in the lender. A TOI report suggested that GIC of Singapore, Asian Development Bank, IFC and Commonwealth Development Corporation are eyeing stakes in IDBI Bank.

Citing sources, TOI said the government was close to finalising the terms of the deal and bankers are on the job, amid indications that IFC, and possibly ADB, could be offered board seats. Citi and Credit Suisse are said to be advising IDBI Bank on fund raising, it said.

Following the report, the stock of IDBI Bank surged 4.78 per cent to hit a high of Rs 73.40 on BSE. The government held 73.98 per cent stake in the bank as of September 30. The bank will announce its second quarter numbers on October 25.