Disinvestment
‘Confidential process’: IDBI Bank after stock tanks on report govt may scrap disinvestment
Mumbai/IBNS: IDBI Bank on Monday said it cannot confirm or deny a media report claiming that the government may scrap its proposed majority stake sale in the lender after the bank’s shares plunged sharply in early trading.
The bank cited confidentiality while responding to the report.
“The proposed strategic disinvestment of IDBI Bank Limited is a confidential process being undertaken by the Government of India (GOI) and, hence, IDBI Bank is not in a position to either confirm or deny the referenced news report,” the bank said, as quoted by The Economic Times.
Responding to queries on whether negotiations were underway, the bank said the divestment process is conducted through a competitive bidding mechanism in accordance with the government’s disinvestment guidelines.
Shares of IDBI Bank fell sharply after the report suggested the government was considering scrapping the strategic disinvestment process.
The stock tanked nearly 16 percent in early trading on Monday, plunging to Rs 77.66 during the morning session amid investor concerns over the possible rollback of the privatisation plan.
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