IDBI Bank Shares Tumble After Reports of Government Scrapping Stake Sale Plans
Shares of IDBI Bank saw a sharp fall of over 14% on Monday after reports emerged that the Indian government may cancel the ongoing process to sell its majority stake in the lender.
By mid-morning, the stock had dropped around 13.6% to ₹79.67, marking its steepest single-day decline since June 2024. The news created uncertainty among investors, who had been closely watching the long-awaited disinvestment plan.
The government, along with the Life Insurance Corporation of India (LIC), currently holds a combined stake of over 94% in the bank. Back in 2022, both stakeholders had initiated plans to sell around 60.7% of their shareholding as part of a strategic divestment move.
The sale had attracted interest from global players, including Fairfax Financial and Emirates NBD. However, reports suggest that the bids received did not meet the government’s expected valuation, prompting a rethink on the deal.
According to sources, the current sale process may now be scrapped, with the possibility of a fresh attempt once market conditions improve and investor interest strengthens.
The development was first reported by Bloomberg News. As of now, neither IDBI Bank nor the finance ministry has officially commented on the situation.
The sudden drop in share price reflects investor concerns over uncertainty around the bank’s future ownership and the delay in its privatisation process.
News source: Information for this article was gathered from a variety of reliable news outlets.
