Shares of IDBI Bank rose nearly 3 per cent in early trade on Wednesday after the lender issued a clarification regarding reports of a revised offer from Canada’s Fairfax Financial for its stake sale under the government’s strategic disinvestment programme.
The stock climbed as much as 2.8 per cent to ₹88.99 during the morning session. By 9.45 am, IDBI Bank shares were trading 1.87 per cent higher, while the benchmark Nifty 50 index was up 0.6 per cent.
Bank responds to media reports
After market hours on Tuesday, IDBI Bank informed stock exchanges that it was “not in a position to either confirm or deny” reports claiming that the Government of India was close to accepting a revised offer from Fairfax Financial for its stake in the lender.
The bank clarified that it had not received any official communication from the government regarding the finalisation of an agreement under the ongoing strategic disinvestment process.
Disinvestment process remains confidential
In its regulatory filing, IDBI Bank said the strategic disinvestment process is being handled confidentially by the Government of India.
The bank stated that because of the confidential nature of the process, it could neither verify nor reject media reports regarding any revised bid or negotiations involving Fairfax Financial.
The clarification came amid investor speculation following reports that the Canadian financial services company had submitted a revised proposal for acquiring the government’s stake in the lender.
Investors await official announcement
The government’s strategic disinvestment of IDBI Bank has been closely tracked by investors for several months, with market participants awaiting an official announcement on the successful bidder.
Until a formal communication is issued by the government, the bank said it is unable to provide further details on the ongoing process.
The latest clarification helped ease uncertainty in the market, contributing to positive investor sentiment and lifting IDBI Bank shares during Wednesday’s trading session.