IDBI – Peek into Next Multi Bagger

History of IDBI


IDBI was established in 1964 as a wholly owned subsidiary of the Reserve Bank of India (RBI). In 1976, ownership was transferred to Government of India (GoI) & in 1995, GOI disinvested 18 % of its stake through IPO.

IDBI is a largest DFI in India. It has played an important role in providing project financing & are among largest debt issuers in domestic markets.
It has strong brands created with over more than 5 million investors. Pioneered capital market development by setting up National Stock Exchange – an electronic Stock Exchange, NSDL – a Securities Depository, CARE – a Rating Agency, SHCIL – a Depository, etc.

Some Fact about IDBI


IDBI is holding following investments
25% stake in NSDL ( 20 lac shares)
Majority stake in SIDBI
17% stake in NSE
18% stake in Stockholding Corporation ( 38 lac shares )
28% stake in IFCI?( 18 cr shares)


According to sources, Fin min has issued a LOI to IDBI to sell 15%
stake in NSDL, majority holding in SIDBI, at least 10% from NSE and
entire 18% in Stockholding Corporation to raise sizable funds to meet the
growing requirement of infrastructure requirement.


a.) NSE stake is now openly valued at Rs.2400 crs i.e. Rs.35 per share

b.) NSDL is valued at Rs.800 crs on rough estimates and 15% dilution could mean Rs.110 crs in the hands of IDBI i.e Rs.1.50 per share


c.) 38 lac shares of Stock holding @ Rs.1400 works out to Rs.500 crs in the hands of IDBI. Rs.7 per share

d.) 18 cr shares of IFCI could fetch at least 540 crs to IDBI which is around Rs.7.5 per share


Totaling all this works out to Rs.51 per share whereas there is cash reserve of Rs.30 plus/share in the Balance Sheet. It means IDBI is available at Rs.10 per share minus cost of investments and life insurance biz coming into.


Public holding is around 14% whereas FII holding is nearly 13% so more scope for hiking it IFCI's way.


So it’s for anyone guess, the Valuations per share for the largest Industrial Financial Institution.


Note: Special Thanks to my friends who have contributed the above details.


Disclosure: I may have position or maybe trading in above said stocks for myself/ family members / friends / Associates.