Shares of IDBI Bank surged nearly 10% in trade on Monday, Aug. 24 on buzz over certain media reports claiming the government is close to accepting a revised offer from Canada's Fairfax Financial for its stake in the lender. Sources told NDTV Profit that IDBI Bank-Fairfax deal will be announced very soon as ''It's almost a done deal'. Only a few final clearances are left. ''It should go to the Cabinet this week or next. The file is currently with Finance Minister,'' sources said.
On Monday, shares of IDBI Bank opened at Rs 82.24 against a previous close of Rs 82.24 and rallied over 10% to hit an intraday high of Rs 90.90 apiece on the NSE. The stock last traded 8.405 higher at Rs 89.15 apiece on the NSE. This compares to a drop of 0.35% in the Nifty 50 benchmark. The stock has rallied over 8% in one week, 5% in one month, but has shed nerly 145 on a year-to-date basis. The bank commands a market cap of Rs 95,793.15 crore, according to NSE data.
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IDBI Bank Share Price Intraday
IDBI Bank-Fairfax Deal
Last month, IDBI Bank had said it is "not in a position to either confirm or deny" reports claiming the government is close to accepting a revised offer from Canada's Fairfax Financial for its stake in the lender. In an exchange filing, the bank had said it has not received any communication from the government regarding the finalisation of transaction under the ongoing strategic disinvestment process.
"The proposed Strategic Disinvestment of IDBI Bank Limited is a confidential process being undertaken by the Government of India (GOI) and, hence, IDBI Bank is not in a position to either confirm or deny the referenced news report," the bank said. The clarification came after stock exchanges sought the bank's response to a Business Standard report that claimed the government was close to accepting a sweetened offer from Fairfax Financial for IDBI Bank.
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IDBI Bank had also said it has no role to play in the bidding process or negotiations, noting that the government's strategic disinvestment is being carried out through a competitive bidding process. "Such bidding processes do not entail negotiations and accordingly, IDBI Bank has had no role to play in the negotiations," the lender had said in its statement last month.
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