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Govt Scraps IDBI Bank Divestment Plan
16 Mar
Summary
- IDBI Bank shares dropped 15% on Monday, March 16.
- Government likely scrapping majority stake sale plans.
- Low bids received below the minimum expected price.
IDBI Bank Limited saw its share price plummet by 15% during intraday trading on Monday, March 16. The steep fall was reportedly triggered by news that the Indian government's plan to divest its majority stake in the bank is likely to be called off.
Reports indicate that the government, along with Life Insurance Corporation of India, had initiated the sale of a 60.7% stake in 2022. However, the process is now expected to be scrapped as the bids received did not meet the minimum reserve price set for the sale.
This development has led to considerable market reaction, with investors reacting negatively to the potential halt in the divestment strategy for the public sector bank.
