Shares of IDBI Bank rose 8% on October 28 after Moneycontrol reported that government is likely to soon invite bids for stake sale.

Officials of Department of Investment and Public Asset Management and Department of Financial Services are expected to meet on October 31 to finalise and approve the bidding process, Moneycontrol has learnt from government officials.

The meeting is expected to clear the final draft of the Share Purchase Agreement (SPA) – a key transaction document detailing buyer obligations, transfer of management control and post-sale responsibilities – and set the timeline for inviting financial bids from shortlisted investors.

At 1:50 pm on October 28, IDBI Bank shares on NSE were trading 7.5% higher at Rs 103 apiece after hitting an intraday high of Rs 104.15.

Trading volumes are at 67 million shares so far, 10 times the 30-day average.

A person aware of the development said the discussion will be critical for moving the transaction to its final phase. “Most of the groundwork has been completed. The meeting at the end of this month is expected to clear the remaining procedures so that financial bids can be invited without delay,” said the person, requesting anonymity.

The approval of the SPA and the subsequent invitation of financial bids will mark the final phase of the long-awaited IDBI Bank privatisation process that has been underway since 2021. The Centre and the Life Insurance Corporation (LIC) together hold about 94.71% stake in the lender and plan to sell 60.72% to a strategic investor, relinquishing management control.