The IDBI Bank stock rose as much as 14.34% intra-day on Tuesday following reports that Life Insurance Corporation\u2019s (LIC) plan to increase its stake in the bank may trigger an open offer. The public sector bank\u2019s share finally ended at Rs 53.20 on the BSE, up 9% from its previous close. Last year, the government had permitted Oil and Natural Gas Corporation to buy the government\u2019s 51% stake in Hindustan Petroleum Corporation without making an open offer. Bloomberg reported on Tuesday that LIC\u2019s investment in IDBI Bank may trigger an open offer for the bank, citing a government official. It added that the government-owned LIC has not yet approached markets regulator Securities and Exchange Board of India to seek exemption to the open offer, which is triggered automatically if an entity holds over 25% stake in a listed company. The official, according to Bloomberg, hinted that a preferential allotment of shares to the insurer is also possible. The aggregate volume of the stock traded on the BSE and NSE on Tuesday stood at 4.8 crore against a three-month average volume of 2.01 crore. The bank's shares are down 11.11% since the beginning of this year, compared with a 6.2% rise in the Sensex during the same period. Last month, the Insurance Regulatory and Development Authority of India had approved a proposal by LIC to raise its stake in IDBI Bank up to 51% from the current 10.82%, giving the country\u2019s largest insurer special relaxation from its 15% holding cap for insurers in a single firm. The deal is expected to save the government from having to infuse more funds into IDBI Bank, which had received as much as Rs 10,610 crore last fiscal, the most by any public-sector bank. The Reserve Bank of India (RBI) has already initiated a prompt action on the bank, restricting its lending in only low risk-weighted assets. In the March quarter of 2017-18, IDBI Bank reported a net loss of Rs 5,662.76 crore, wider than the Rs 3,199.8 crore loss reported in the same period last year, owing to an 80% year-on-year jump in provisions. Rating agency Icra said on Tuesday that it expects that the change in ownership of IDBI Bank is unlikely to have any significant implications on the credit profile of the lender as the existing ratings factor in the sovereign support.