IDBI Share Price in Focus as Government Plans to Conclude Stake Sale by End-2025

IDBI Bank shares traded in the green on May 7, 2025, with the stock rising 0.87% to touch an intraday high of ₹78.50 at 11:30 AM on the NSE. The scrip opened at ₹76.00, marginally lower than its previous close of ₹77.79, but gained momentum during the session to reach near its day’s high of ₹78.47. 

Strategic Disinvestment Timeline Confirmed

The spotlight is back on IDBI Bank as the government, along with the Life Insurance Corporation of India (LIC), is set to complete the strategic disinvestment of its majority stake in the lender by the end of 2025.  

Nagaraju, Secretary of the Department of Financial Services (DFS), confirmed the timeline during an event on May 5, marking progress in one of the most significant divestment efforts of the year.

Breakdown of the Stake Sale

The Centre and LIC collectively plan to offload 61% of their holding in IDBI Bank split between the government’s 30.48% and LIC’s 30.24%. This stake sale is expected to be a key contributor to the central government’s disinvestment and asset monetisation target of ₹47,000 crore for the financial year 2025–26. 

Due Diligence and Procedural Progress

The strategic sale process, which began receiving expressions of interest (EoIs) as early as January 2023, has moved into the due diligence phase. Shortlisted bidders are now reviewing the bank’s assets and operations, with data room access and asset valuation already underway, according to Arunish Chawla, Secretary of the Department of Investment and Public Asset Management (DIPAM). 

Market Implications and Investor Outlook

IDBI Bank’s share price could see increased investor interest in the coming months, driven by the anticipated conclusion of the transaction and the broader push toward banking sector reform. If successful, this divestment will not only help meet fiscal targets but also mark a key step in reducing government presence in the financial sector. 

Read More: Best Bank Stocks in May 2025: Indian Bank, Jammu and Kashmir Bank and More – Based on 5Y CAGR. 

Conclusion

With the IDBI stake sale now approaching its final stages, the market will be closely watching for updates. The outcome could shape investor sentiment around both public sector banks and future disinvestment initiatives. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.