IDBI Bank rose 4.89% to Rs 79.30 at 11:38 IST on BSE on reports Asian Development Bank has held talks with the government to acquire stake in the Indian state-run bank.
Meanwhile, the BSE Sensex was down 241.12 points, or 0.83%, to 28,804.16.
On BSE, so far 22.37 lakh shares were traded in the counter, compared with average daily volume of 7.04 lakh shares in the past one quarter. The stock hit a high of Rs 80.25 and a low of Rs 76.20 so far during the day. The stock hit a 52-week high of Rs 95.70 on 3 December 2015. The stock hit a 52-week low of Rs 47.40 on 12 February 2016. The stock had outperformed the market over the past 30 days till 8 September 2016, rising 13.26% compared with 4.57% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 13.86% as against Sensex's 9.05% rise.
The large-cap company has equity capital of Rs 2,058.82 crore. Face value per share is Rs 10.
According to media reports, multilateral agency Asian Development Bank (ADB) has held talks with the government to acquire stake in IDBI Bank as negotiations with World Bank arm International Financial Corporation (IFC) have slowed down.
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ADB, along with IFC and Commonwealth Development Corporation (CDC) were in the fray to buy into IDBI Bank, where the government is open to cutting its stake below 51%, something it can't do in other state-run lenders, given restrictions imposed by the law. ADB is expected to acquire 10-15% stake in the bank, reports added.
The government is looking to reduce its stake in IDBI Bank as part of a strategy to rework its functioning as it is seen to have fallen short of expectations. Despite being saddled with legacy assets, the bank has been a perpetual test case for the government since liberalisation the last one being modelling it on the lines of ICICI Bank in what was seen as a transformation.
The Government of India currently holds 73.98% stake in IDBI Bank (as per the shareholding pattern as on 30 June 2016).
IDBI Bank's net profit rose 78.35% to Rs 241.10 crore on 4% growth in operating income to Rs 8219.43 crore in Q1 June 2016 over Q1 June 2015.
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