The share price of IDBI Bank gained 6 percent in early trade on Wednesday after the government kick-started the process of selling its stake in the bank by issuing Request for Proposals (RFP) to hire transaction and legal advisors for the sale.
The Department of Investment and Public Asset Management, in the RFP issued on June 22, said that the bids by interested investment banks, financial institutions, consulting firms and law firms should be submitted by July 13.
The government could offload stake between 26 percent (the minimum required to transfer management control) and the centre's entire stake, which is currently at 45.5 percent.
The Life Insurance Corporation of India (LIC) in January 2019 became a majority shareholder of the bank by acquiring controlling stake. LIC holds 49.24 percent stake in IDBI Bank.
The Cabinet Committee on Economic Affairs had cleared the 'strategic divestment' of IDBI Bank in May.
At 11:40 am, the shares of IDBI Bank were trading 2.72 percent higher at Rs 39.65 apiece on the BSE.