IDBI Bank is the top gainer on the BSE currently. The stock price surged 12% to Rs.55.85, with volumes doubling up.
The buzz around the stock is at its loudest as IRDA is likely to clear the deal - insurance behemoth LIC is mulling acquiring a majority stake in the debt ridden state-owned bank.
The buzz is that the deal is sealed and will bring in the much needed cash, of around Rs.13,000 crore into the NPA ridden bank. IDBI Bank is expected to make a preferential allotment of shares to LIC.
The Govt currently holds a, 80.96% stake in the Bank and post this deal, the stake will come down below 51%. LIC already holds a 10.82% stake in the Bank and it might get an exemption this time from the 15% cap.
LIC has wanted to get into the banking space and this will mark its entry and the plan is to use the Axis Bank model.