Can IDBI Bank share price surge to Rs 100? Analysts upbeat after Sebi clears reclassification of govt’s stake

IDBI Bank Share Price: IDBI Bank shares shot up around 5 per cent on the NSE on Friday after the company informed about getting a SEBI nod to government to classify its stake in the bank as 'public' after divestment on condition that its voting rights do not exceed 15 per cent of the total voting rights.

The government and Life Insurance Corporation together are looking to sell 60.72 per cent of IDBI Bank and had invited bids from potential buyers in October. The government and LIC hold 94.71 per cent stake in the bank.

The stock quoted Rs 57.20 around 10:45 am, up by 4.38 per cent or Rs 2.40 apiece from the previous close of Rs 54.75. 

Zee Business panellist and technical analyst Rakesh Bansal said that IDBI Bank on chart appears to be strong. He said that existing shareholders should hold and add on corrections around Rs 50/52. Technical structure, he said, suggests IDBI Bank shares it will cross Rs 100 level.

IDBI Bank must make an application with the market regulator for the reclassification after the completion of the strategic disinvestment, the exchange filing said. 

Another technical Analyst Simi Bhaumik said that the current market volatility does not permit keeping a lot of open positions in the stock. She, however, suggested long term investor to hold. From trading perspective, she said that the stop loss should be placed at Rs 54.50.    

IDBI Bank stock has outperformed the Nifty50 by over 10 per cent. The stock is trading at a price to book value of 1.78, which is above industry median, according to data sourced from Trendlyne. The stock is also highly volatile with a 1-year beta of 1.54. A number above 1 is considered volatile.  

Momentum indicators RSI and MFI are at medium range. While the former is at 53.4, the latter is at 44.8. A number below 20 is considered oversold while above 70 is seen as stock being in oversold territory.  

The 52-week high is Rs 61 which the stock had hit on 15 December, 2022. Its 52-week low is 30.50 which it had touched on 30 June, 2022.       

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(Disclaimer: The views/suggestions/advises expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)