IDBI Bank share price closed 20% higher today amid report that sale of government's stake in IDBI Bank may be delayed due to weak market situation amid ongoing coronavirus crisis. IDBI Bank share price gained 19.95% to Rs 24.35 in early trade and since then was stuck in the upper circuit of 20%.
The stock closed 20% higher at Rs 24.35 against previous close level of Rs 20.30. The stock touched 52-week high of Rs 40.90 on November 25, 2019 and 52-week low of Rs 17.30 on March 13 this year. The stock has gained 25.52% in the last 7 days. The stock stands higher than 5 day, 20 day and 50 day moving averages but lower than 100 day and 200 day moving averages.
IDBI Bank share has fallen 35.33% during last one year and lost 34.19% since the beginning of this year.
Market cap of the bank rose to Rs 25,276 crore on BSE.
According to a PTI report, government may find it challenging to sell stake due to muted market valuation and the same may be delayed beyond March 2021. In the budget 2020-21, Finance Minister Nirmala Sitharaman had announced that the government was looking to sell stake in LIC via an initial public offer (IPO) during FY21. The government currently owns 100 per cent in LIC, while it holds nearly 46.5 per cent stake in IDBI Bank.
Amid the ongoing coronavirus crisis, the government recently, for the second time, extended the deadline for bidding for the privatisation of Bharat Petroleum Corp Ltd (BPCL) by over a month to July 31. The report also said that the government will have to cut down its expected realisation from stake dilution of both LIC and IDBI Bank even if the market condition sees an improvement.
Copyright©2021 Living Media India Limited. For reprint rights: Syndications Today