Shares of IDBI Bank Ltd. surged to a five-year high after multiple large trades.
At least 43 lakh shares, or 0.04% equity, changed hands in four large trades, according to Bloomberg data. The trades took place in the price range of Rs 69.65 to Rs 70.95 apiece. The buyers and sellers were not known immediately.
Additionally, the Department of Investment and Public Asset Management has invited bids for asset valuers for the bank. The bids are expected to be submitted by Oct. 9. The asset valuer will work closely with the transaction adviser and legal adviser.
The government is looking to sell a 30.48% stake, while Life Insurance Corp. of India is looking to offload 30.24% of its share in IDBI Bank, along with the transfer of management control.
Shares of the company rose 7.86% to Rs 70 apiece, compared to a 0.24% advance in the NSE Nifty 50. The share price advanced as much as 9.78% intraday to hit Rs 71.25 per share, the highest level since April 19, 2018.
The stock has risen 29% on a year-to-date basis. Total traded volume stood at 6.7 times its 30-day average. The relative strength index was at 74, implying that the stock maybe overbought.
One analyst tracking the company maintains a 'sell' rating on the stock, according to Bloomberg data.
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