IDBI Bank shares jump 8% as govt reaffirms sale plan

Stock jumps to a one-month high

Shares of IDBI Bank rose as much as 8% on April 24, hitting a one-month high of Rs 79.90. The move followed remarks by Finance Minister Nirmala Sitharaman that the government will continue with the divestment of its stake in the bank. The statement came at a time when the stake sale has been surrounded by conflicting media reports and sharp price swings in the stock.

The stock later pared gains. At 1:11 pm, IDBI Bank shares were trading 2.6% higher at Rs 75.65. Separately, a market data snapshot cited IDBI Bank’s price as Rs 79.05 on April 24.

What the finance minister said

Sitharaman made the comments on the sidelines of an event organised by State Bank of India. She said the reason for the delay in the stake sale had been “publicly announced earlier”.

“We will still go on (with the divestment),” she said, referring to the government’s plan to sell down its holding in IDBI Bank. The comment is significant because it signals continuity after reports earlier in March suggested the strategic sale could be called off.

Stake sale structure: Centre and LIC to divest 60.72%

The planned transaction involves a combined stake sale by the Government of India and Life Insurance Corporation of India (LIC). The Centre aims to sell 30.48% of IDBI Bank, and LIC aims to sell 30.24%. Together, that totals 60.72%.

Shareholding data cited in the coverage shows the Centre currently holds 45.48% in the lender, while LIC owns 49.24%. The public float was also cited at 5.29%, a factor that has been flagged in reports as a constraint for market-based valuation.

Trading volumes spike as sentiment turns

The rally on April 24 was accompanied by a sharp rise in trading volumes. Nearly 36 million shares changed hands on the bourse, which was about 14 times the number of shares traded till the same time on April 23.

High volumes alongside price moves often indicate fast-moving positioning by traders and investors, particularly when a stock is sensitive to policy headlines. IDBI Bank has been volatile around each update on the divestment process.

Earlier reports and the sharp sell-off in March

The April 24 rise comes after a steep fall in March, when media reports suggested the government’s plan to sell its stake may have been scrapped because financial bids were lower than the reserve price. One account noted a 16.49% drop in a previous session amid those reports.

Reuters also reported that IDBI Bank shares slumped as much as 16.5% on March 16 after reports that the government would shelve bids for a majority stake as offers were below minimum price expectations. On that day, IDBI Bank said in an exchange filing that it had received no government communication on the disinvestment process.

Who bid, and when bids were submitted

Reports said that bids were submitted on 6 February 2026 after shortlisted bidders completed regulatory clearances and due diligence. Fairfax, led by Prem Watsa, and Emirates NBD were named among bidders in the coverage.

A separate Reuters account noted that IDBI’s stake sale had attracted bids from Fairfax Financial and Emirates NBD. It also reported that Kotak Mahindra Bank, previously in the running, indicated it would not participate in the financial bidding process.

Offer-for-Sale (OFS) option and the free-float issue

In March, PTI reported that the government may consider selling a stake through the Offer-for-Sale (OFS) route to increase public shareholding, after an unsuccessful attempt to divest via the strategic stake sale route. The same coverage cited the low public float of 5.29% as limiting “fair valuation” and price discovery.

The idea outlined in the report was that raising free float by 10% or 15% could improve transparency and provide a more reliable benchmark for valuation. The report added that a strategic sale could be pursued even after one or two OFS tranches.

Key figures investors tracked

Timeline of the divestment process

Why the April 24 comment mattered

Sitharaman’s statement directly addressed the core uncertainty created by the March reports around bid levels and the reserve price. For markets, the key takeaway was that the government still intends to proceed with a cabinet-approved divestment plan, even if the timeline and route are not clearly defined in the public domain.

At the same time, IDBI Bank has made it clear in earlier disclosures that the disinvestment process is being handled by the Government of India through a competitive bidding route and is confidential. Until there is an official update from the relevant departments on the next steps, trading in the stock is likely to remain headline-driven.

Conclusion

IDBI Bank shares rallied sharply on April 24 after the finance minister reaffirmed that the government will go ahead with the divestment plan involving the Centre’s 30.48% and LIC’s 30.24% stakes. The move came after weeks of volatility linked to reports on bid levels, reserve price expectations, and possible alternative routes such as OFS. The next major trigger for investors will be any formal communication from the government on the divestment timeline and process milestones.