IDBI Bank would continue its primary dealer business even if a foreign bank acquires majority stake and management control in the private sector bank, the finance ministry said on Tuesday.

As part of the primary dealer activity, IDBI Bank is involved in market making activities in respect of G-Secs, including T-bills. IDBI’s treasury actively participates in primary auction of government bonds.

In response to a query on the primary dealership activities undergoing change/getting impacted, where a foreign bank acquires more than 50 per cent shareholding and management control in the strategic sale, the Department of Investment and Public Asset Management (DIPAM) said, “There may not be any impact on the primary dealer business of the IDBI Bank.”

Primary dealers are RBI registered entities that buy and sell government bonds. They have the licence to buy government securities (G-secs) directly from the central bank and sell them to other buyers, thereby creating market for G-Secs.

The clarification is part of the supplementary responses to queries received from interested bidders for IDBI Bank. The first set of responses were released last month.

The DIPAM had then clarified that IDBI Bank will continue to operate as an ‘Indian private sector bank’ after its strategic sale even if the successful bidder is a foreign bank.

The government had on October 7 invited bids for privatising IDBI Bank and said that it along with LIC will sell a total of 60.72 per cent stake in the financial institution. The last date for putting in Expression of Interest (EoI) or preliminary bids is December 16.

The government and LIC together hold 94.72 per cent stake in IDBI Bank and have offered to sell 60.72 per cent stake in the bank. The successful bidder would be required to make an open offer for acquisition of 5.28 per cent of the public shareholding.

Interested bidders would have to clear RBI’s ‘Fit & Proper’ assessment and get security clearance from the government/home ministry in the EoI stage itself to be able to access IDBI Bank’s data room for due diligence

The DIPAM had earlier said that potential investors should have a minimum net worth of Rs 22,500 crore, must report net profit in three out of the past five years to be eligible for bidding for IDBI Bank.

Also, a maximum of four members would be allowed in a consortium. The successful bidder would be required to mandatorily lock-in at least 40 per cent of the equity capital for five years from the date of acquisition.

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If you are planning to invest in the Share Market, then this news is beneficial for you. Actually, experts are looking very excited about a banking share and are advising investors to buy. This is the stock of ICICI Bank… From Jefferies to Morgan Stanley have expressed confidence in it.

Experts are giving Buy rating

According to most market experts who closely monitor the Stock Market, if you have ICICI Bank Share in your portfolio, then it can prove to be a profitable deal for you. In the coming days, it can make investors rich by making a big jump. In such a situation, experts are advising to buy it. At the same time, this stock is already in the portfolio of investors, it is seen saying to keep it on hold.

Share close to all time high

On Monday, the first trading day of the week, at the end of trading in the stock market, ICICI Bank shares closed at Rs 933.90, up 0.35 per cent. Significantly, the record high of this stock is Rs 958 and experts expect it to cross this level soon. Bullish brokerage has given Buy rating to this stock.

Shares of ICICI Bank were in focus today after global research firm Morgan Stanley retained the private sector lender as one of its top picks with a target price of Rs 1,250 per share.

Read at 👇https://t.co/dISzJD1UZq#ICICIBank

— Moneycontrol (@moneycontrolcom) December 5, 2022

target price of Rs 115

Brokerage houses have given a Buy rating on ICICI Bank shares with a target price of Rs 1,115. According to Morgan Stanley, ICICI Bank shares are in good condition. Nuwama Institutional Equities said macro tailwinds and strong execution makes this banking stock a winner. Whereas Jefferies has said that ICICI Bank is in our top selection. Despite no path to near-term earnings, its growth is going to be good. Kotak Institutional Equities said it has maintained its target price on the stock at Rs 1,070.

stock market closed on red mark

The stock market started with a decline on Monday. After fluctuating trading throughout the day, the 30-share BSE Sensex finally closed at 62,834.60 points, down 33.9 points, or 0.05 per cent. While the NSE Nifty closed at the level of 18,701.05, down 4.95 points i.e. 0.03 per cent. During the first day’s trading, the Sensex dived up to 360.62 points.

(Note: Take the help of a financial advisor before investing in the stock market)

The post ICICI Bank Share Target: Do you have this bank stock, do not sell it…Experts said – buy it appeared first on Republic Aeon.