Now Reading: IDBI Bank says DIPAM handles disinvestment, no disclosure pending
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IDBI Bank says DIPAM handles disinvestment, no disclosure pending
IDBI Bank has clarified to stock exchanges that its strategic disinvestment is being handled by the Department of Investment and Public Asset Management (DIPAM) and that there is no undisclosed price-sensitive information…
IDBI Bank has clarified to stock exchanges that its strategic disinvestment is being handled by the Department of Investment and Public Asset Management (DIPAM) and that there is no undisclosed price-sensitive information or any impending announcement. The clarification came on August 25 in response to queries from the BSE and NSE, which sought an explanation for a sharp rise in trading volumes.
The stock exchanges acted after media reports on August 24 suggested the government was close to accepting a revised bid from Canada's Fairfax Financial to acquire a 60.72% stake in IDBI Bank from the government and the Life Insurance Corporation of India. The reports had driven IDBI Bank shares up nearly 10% that day. In its reply, the bank said it has promptly disclosed all relevant developments to the exchanges from time to time. At 12:55 PM on Tuesday, the stock traded 0.86% higher at Rs 88.69.
Indian Opinion Analysis
The clarification places the disinvestment squarely with DIPAM, the nodal agency for all central government stake sales, not with the bank's management. The government and LIC together hold a 94.7% stake in IDBI Bank, and selling even part of it would be one of the largest such transactions. The next milestone to watch is DIPAM's own confirmation or denial of any binding bid, which would trigger a formal expression-of-interest process under its standard framework.
Source: ndtvprofit.com
This brief was synthesised by AI from the source linked above.
