The share price of the Industrial Development Bank of India (IDBI) surged to a 52-week high of Rs 37.20 on Tuesday on rumours that the restructuring package for the financial term lending institution has been finalised.
The scrip eased a bit later, but was placed higher by 13.26 per cent. It witnessed an intra-day low of Rs 31.90 and closed the day at Rs 36.35, up by 13.42 per cent, on the Bombay Stock Exchange.
A total of 36.35 lakh shares changed hands on the counter. The scrip has now risen 105 per cent from Rs 17.70 on May 8, 2003. Market buzz was that the restructuring package for the state-run financial institution has been finalised by the Centre.
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Players say that the company has also started receiving old debts from sick companies in the steel and textile industries, which are witnessing a revival.
Meanwhile, the Securitisation Act has proved a boon to term-lending institutions, which can now attach assets of defaulting borrowers without having to go to the court for the purpose.