Shares of IDBI Bank surged over 9 per cent today amid reports that insurance behemoth LIC will make an open offer to minority shareholders of the lender in which it proposes to acquire up to 51 per cent equity.
The stock rose sharply by 9.02 per cent to close at Rs 53.20 on BSE. Intra-day, it jumped 14.34 per cent to Rs 55.80.
At NSE, shares of the company zoomed 9.32 per cent to end at Rs 53.35.
The company's market valuation climbed Rs 7,194.93 crore to Rs 22,243.93 crore.
On the equity volume front, 64.35 lakh shares of the company were traded on BSE and over 4 crore shares changed hands at NSE during the day.
Insurance regulator Irdai has already given its approval to LIC for the stake purchase, a move which will help the debt-ridden bank get a capital support of Rs 10,000-Rs 13,000 crore.
If the deal goes through IDBI Bank, which is grappling with mounting toxic loans with gross non-performing assets rising to a staggering Rs 55,600 crore at the end of latest March quarter, will get much needed capital support to revive its fortune. During the period, the lender's net loss stood at Rs 5,663 crore.
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