Shares of IDBI Bank Ltd surged as much as 8% to an intraday high of ₹79.90 apiece on the NSE in Friday’s session after Finance Minister Nirmala Sitharaman reiterated that the government will proceed with the long-pending stake sale in the lender.

The move eased concerns around the privatisation process after weeks of uncertainty over whether the transaction would move ahead.

Govt signals continuity on divestment

While speaking on the sidelines of an SBI event in Maharashtra, Sitharaman said the government will continue with the stake sale, reaffirming its commitment to the planned disinvestment of IDBI Bank.

The government currently holds 45.48% in IDBI Bank, while Life Insurance Corporation of India owns 49.24%. Together, the two hold 94.71% in the lender. Under the original plan, the government and LIC are looking to sell a combined 60.72% stake, comprising 30.48% from the government and 30.24% from LIC.

Recent hurdle: bids below reserve price

The latest uncertainty around the transaction emerged after financial bids came in below the reserve price set for the strategic sale. According to the April 7 report, the government may seek revised financial bids from the two remaining potential buyers after their earlier offers fell short of the reserve price fixed by the inter-ministerial group on disinvestment.

The Expression of Interest for the stake sale was floated in October 2022, while financial bids were submitted on February 6, 2026. The process has since moved into the stage of evaluating bids and deciding whether revised offers should be called.

The stock’s sharp move comes after it had fallen earlier when reports suggested that the sale process could face delays because of the gap between bidder offers and the government’s expected valuation. IDBI Bank had clarified at the time that it had not received any formal communication regarding the disinvestment process.

Friday’s rally was triggered by the finance minister’s statement that the stake sale process will continue, giving investors a fresh policy signal after the recent uncertainty around bids and valuation.

The shares of IDBI Bank have fallen over 9% during the past year, underperforming the broader Nifty Bank index that has risen nearly 2% during the same period.