IDBI Bank shares soar over 10%, m-cap rises by Rs 7,567 crore

New Delhi: Shares of IDBI Bank on Friday surged over 10 percent amid reports that LIC may acquire majority stake in the company.

The bank's stock zoomed 10.02 percent to settle at Rs 54.90 on the BSE. Intra-day, it soared 11.92 percent to Rs 55.85.

On the NSE, shares of the company jumped 10.33 percent to close at Rs 55.

The company's market valuation surged Rs 7,566.73 crore to Rs 22,954.73 crore.

In terms of equity volume, 86.81 lakh shares of the company were traded on the BSE and over 7 crore shares changed hands on the NSE during the day.

The BSE had sought clarification from IDBI Bank earlier on Friday with reference to news that LIC plans Rs 130-bn capital injection in the company.

Clarifying on the matter, the bank informed stock exchanges, "It is hereby informed that no such discussion has taken place in the board of the IDBI Bank."

The bank further said that in case such communication is received or such matter is discussed in the board meeting, the disclosure thereof will be made immediately to the stock exchanges as per the Sebi regulation.

IDBI Bank is saddled with huge amounts of bad loans and the government wants to revive the lender.

Sources have said that LIC is looking to enter the banking space by acquiring a majority stake in IDBI Bank as the deal is expected to provide business synergies despite the lender's stressed balance sheet.