IDBI Bank shares jump 10% in fag-end trade; here's what triggered the upmove

Shares of IDBI Bank Ltd recorded a stellar uptick in Thursday's late trading session, surging 9.93 per cent to hit an intraday high of Rs 99.08. Last checked, it was up 8.30 per cent at Rs 97.61.

The strong upward movement came after DIPAM Secretary Arunish Chawla reportedly qualified interested bidders (QIBs) for the lender's stake sale have nearly completed the due diligence for the divestment. "We are in an advanced stage of completing the due diligence exercise and further steps," he stated in an interaction with CNBC-TV18.

The government and Life Insurance Corporation of India (LIC) together hold a 95 per cent stake in IDBI, of which 60.72 per cent has been earmarked for sale under the ongoing disinvestment programme.

Separately, the bank informed bourses that CRISIL Ratings has reaffirmed its rating on the long-term debt instruments at 'Crisil AA+(for Fixed Deposits) /Crisil AA (for Long-term Bonds) /Stable' and short-term rating on certificate of deposit programme at 'Crisil A1+'.

On the technical front, the counter traded higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). Its 14-day relative strength index (RSI) came at 62.81. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The stock has a price-to-earnings (P/E) ratio of 14.79 against a price-to-book (P/B) value of 1.96. Earnings per share (EPS) stood at 6.60 with a return on equity (RoE) of 13.27. According to Trendlyne data, IDBI has a one-year beta of 1.4, indicating high volatility.

The counter saw heavy trading volume on BSE as around 20.83 lakh shares changed hands today. The figure was way more than the two-week average volume of 3.20 lakh shares. Turnover on the counter came at Rs 20.04 crore, commanding a market capitalisation (m-cap) of Rs 1,04,954.20 crore.