The government is planning to sell at least 51 per cent of the state-owned lender. And also, LIC and the government will take buyer interest by the end of September. A group of ministers will make the final decision on the structure of the deal. Shares of IDBI Bank have jumped 6.3 per cent in the past 12 months, raising its market valuation to about Rs 42,470 crore ($5.3 billion).
Markets are very positive here as operationally the bank has made a comeback to profitability in Q1 of the current year and hopefully, if the bank is taken over by a Pvt buyer there are good chances of a further re-rating here. Disinvestment news on IDBI Bank is a positive outcome for the management and company but for shareholders, I believe should exit once by taking advantage of this surge and wait for disinvestment process to get over. Therefore, IDBI Bank could hit these targets of Rs 47, Rs 53 and Rs 57+ in coming days.
Markets are very positive here as operationally the bank has made a comeback to profitability in Q1 of the current year and hopefully, if the bank is taken over by a Pvt buyer there are good chances of a further re-rating here. Disinvestment news on IDBI Bank is a positive outcome for the management and company but for shareholders, I believe should exit once by taking advantage of this surge and wait for disinvestment process to get over. Therefore, IDBI Bank could hit these targets of Rs 47, Rs 53 and Rs 57+ in coming days.
The stock will face some resistance at Rs. 50. Once it passes its resistance level, you can expect great returns at the level which I recommend (@Rs.44)