Shares of IDBI Bank surged over 11% on Thursday after the Cabinet Committee on Economic Affairs (CCEA) has given its in-principle approval for strategic disinvestment along with transfer of management control in IDBI Bank.

The extent of respective shareholding to be divested by the GoI and LIC, shall be decided at the time of structuring of transaction in consultation with the RBI.

The Government of India (GoI) and the LIC together own more than 94% of equity of IDBI Bank, with the Centre holding 45.48% and the LIC owning 49.24% stake. LIC is currently the promoter of IDBI Bank with management control and the Centre is the co-promoter.

LIC's Board has also passed a resolution to the effect that LIC may reduce its shareholding in IDBI Bank through divesting its stake along with strategic stake sale envisaged by the Govt. with an intent to relinquish management control and by taking into consideration price, market outlook, statutory stipulation and interest of policy holders. This decision of LIC's Board is also consistent with the regulatory mandate to it to reduce its stake in the Bank.

Shares of IDBI Bank  are trading at Rs 40.55, up Rs 4.2, or 11.55%  at the Bombay Stock Exchange (BSE) on Thursday at 3:18 p.m.

The scrip has touched an intra-day high of Rs 43.50 and low of Rs 40.15. The total volume of shares traded at the BSE is 9,732,440.

Currently, the stock is trading down  10.29% from its 52-week high of Rs 55.75  and above 111.2% over the 52-week low of Rs 19.20.