- IDBI Bank shares fell over 13% on March 16 following disinvestment cancellation
- The share price dropped to Rs 79.80 from Rs 92.20 at the previous close
- The government halted the disinvestment due to bids not meeting expectations
Shares of IDBI Bank tanked over 15% after the opening bell on Monday, March 16 following centre's move to scrap the disinvestment process for the lender.
At 10:25 am on Monday, IDBI Bank share price stood at Rs 78.14 apiece, down 15.23% at NSE. The shares last closed at Rs 92.18.
ALSO READ: IDBI Bank Sale Called Off On Unviable Bids: Govt Sources
Centre had called off the disinvestment process for IDBI Bank after bids did not meet expectations, NDTV Profit reported on Friday. The sale was halted as the two bids from Fairfax, Emirates was under Reserve Price.
Previously, NDTV Profit reported about the delays in the selloff due to the impact of Iran conflict on disinvestment pipeline. Meanwhile, people aware of the development said that the government will go ahead with the stake sale of IDBI Bank with caution.
The centre had formally invited financial bids for disinvestment of IDBI Bank Ltd earlier this year and planned to announce the winning bidder by end-March 2026, while the final closure of the transaction could go beyond the current financial year.
DIsinvestment proposal
As per the proposed plan, the government planned to divest a 30.48% stake in the lender, valued at around Rs 36,000 crore at current market prices. Additionally, Life Insurance Corporation of India (LIC) was preparing to sell a 30.24% stake, making the total stake to 60.72%, which was estimated combined valuation of nearly Rs 72,000 crore.
The disinvestment process had began since January 7, 2023, after the Department of Investment and Public Asset Management (DIPAM) received multiple requests from potential bidders.
In terms of disinvestment proceeds, the Centre had not set a separate target for disinvestment. The proceeds from stake sales were accounted for under the broader category of "miscellaneous capital receipts."
As both government and LIC were planning to leave a controlling stake, the IDBI Bank transaction was expected to be among the largest banking-sector privatisations in India.
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