IDBI Bank shares surged as much as 4% in Tuesday's trading session on the National Stock Exchange, opening at ₹85 compared to the previous close of ₹84.07.
The rally was triggered by reports that the Indian government has received revised financial bids from two foreign bidders for its proposed stake sale in the lender.
The market reaction underscores investor appetite for any concrete progress in the divestment of public sector banks.
IDBI Bank has historically traded at a significant discount to private-sector peers, a valuation gap that analysts have long attributed to the government's continued majority ownership.
The emergence of foreign interest suggests a potential shift in sentiment regarding the bank's strategic direction and future governance.
This development adds to a broader theme of activity in India's public sector banking space.