IDBI Bank Shares Jump After India Govt's Plan to Sell Stake, Give Up Control
By Kosaku Narioka
IDBI Bank Ltd. shares rose sharply Monday morning following news that the Indian government plans to sell its stake and give up management control of the bank.
The shares of IDBI Bank were recently 9.0% higher at 46.55 rupees after rising as much as 11% earlier.
IDBI Bank said after market closed Friday that the government planned to divest a 30.5% stake and government-controlled Life Insurance Corp. of India planned to sell a 30.2% stake, or a 60.7% stake in total, in the Indian lender.
The government currently has a 45.5% stake and Life Insurance Corp. holds a 49.2% stake.
IDBI Bank said the divestment would result in the change of management control and that the government has invited expressions of interest from bidders.
The bank's precursor, Industrial Development Bank of India, was established in 1964 as a development financing institution. IDBI Bank today operates as a full-service universal bank.
The bank booked INR7.69 billion ($92.8 million) net profit on revenue of INR58.36 billion in its first quarter ended June 30.
Shares of banking peer State Bank of India were recently 0.7% lower. Life Insurance Corp. was down 0.9%. The benchmark Sensex stock index was 1.2% lower.
Write to Kosaku Narioka at firstname.lastname@example.org
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October 10, 2022 02:10 ET (06:10 GMT)Copyright (c) 2022 Dow Jones & Company, Inc.