IDBI Bank rallies 6%, hits 52-week high as DIPAM extends bid submission
Shares of IDBI Bank hit a 52-week high of Rs 60.60 as they rallied 6 per cent on the BSE in Thursday’s intra-day trade in an otherwise subdued market after the Department of Investment and Public Asset Management (DIPAM) on Wednesday extended the deadline to submit Expressions of Interest (EoI) for the strategic disinvestment of the Bank to January 7 2023 from December 16 2022.
The last date for submitting physical copies of EoI by interested bidders who have done so electronically was extended from December 23 to January 14.
In the past one month, the market price of IDBI Bank has appreciated by 28 per cent, as compared to 0.84 per cent rise in the S&P BSE Sensex. In past six months, it soared 76 per cent, as against 19 per cent gain in the benchmark index.
The finance ministry, on October 7, issued a preliminary information memorandum (PIM) inviting EoI for the strategic disinvestment of aggregate 60.72 per cent stake of IDBI Bank by the central government and the Life Insurance Corporation of India along with transfer of management control.
Last week, DIPAM said that it would allow a consortium of foreign funds and investment companies to own over 51 per cent of IDBI Bank, clarifying the foreign ownership criteria were for new private banks and not applicable to existing ones.
According to a Business Standard report, DIPAM has received 167 queries from at least 9-10 potential serious bidders about the proposed stake sale and transfer of management control in IDBI Bank. This shows a strong interest in the proposed transaction.
According to sources, at least three private equity firms, one foreign bank, and a couple of alternative investment funds (AIFs) have sought clarity, apart from some home-grown firms, on the proposed deal and the EOI, the newspaper reported. CLICK HERE FOR FULL REPORT
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