IDBI Bank shares surge nearly 6 pc

Shares of IDBI Bank today surged nearly 6 per cent after the Cabinet cleared the purchase of 51 per cent controlling stake in the bank by state-run insurer Life Insurance Corporation (LIC).

The stock soared 5.61 per cent to end at Rs 62.15 on the BSE. Intra-day, it jumped 6.96 per cent to Rs 62.95.

On the NSE, shares of the company surged 5.60 per cent to close at Rs 62.15.

In terms of equity volume, 48.57 lakh shares of the company were traded on the BSE and over 3.9 crore shares changed hands on the NSE during the day.

The Cabinet today cleared the purchase of 51 per cent controlling stake in IDBI Bank by LIC, sources said.

LIC already has 7-7.5 per cent stake in the bank and will acquire the remaining for majority holding.

Although, the proposed acquisition by LIC would not bring any money to the government, the bank would get capital support between Rs 10,000 crore and Rs 13,000 crore, depending on the share price of the bank.