Shares of IDBI Bank spiked over 17% per cent in intraday trade on Saturday after the Finance Minister Nirmala Sitharaman announced in her Budget speech that the government will be selling stake in the lender to private retail investors.
Reacting to the news, shares of IDBI Bank climbed 17% intraday to the high of Rs 39.80, as against the last closing price of Rs 33.90. IDBI stock price trades higher than 100 and 200-day moving averages but lower than 5, 20 and 50-day moving averages.
IDBI Bank stock has gained after 8 days of consecutive fall. IDBI Bank shares have risen 8% in a week, 3.4% in one month and 3.38% year-to-date. Although the shares have 30% in one year, 50% in 3 years and 46% in 5 years.
Volume-wise, 15 lakh and 174 lakh shares were trading on BSE and NSE counters, both above the 5, 10 and 20-day average volume traded.
In January 2019, government had sold stake in IDBI Bank to insurance behemoth Indian state-owned insurance group Life Insurance Corporation of India (LIC).
LIC had completed the process of picking up a controlling 51% stake in IDBI Bank, which had the highest NPAs and was under the RBI's prompt corrective action (PCA) framework. LIC has often bailed out public sector companies and banks.
As of now, LIC owns 51 per cent stake in IDBI Bank, while government holds 46 per cent shares in the lender.
FULL COVERAGE: Union Budget 2020