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Cabinet cleared the strategic sale of 60.72% government and LIC stake in IDBI Bank to Fairfax Financial Holdings for over Rs 52,000 crore, priced at Rs 81 per share
By ScoutQuest · · 1 min read
- Stake sold to Fairfax
- 60.72 percent
- Deal value
- 52,000 crore rupees
- Price per share
- 81 rupees
- Market closing price
- nearly 90 rupees
- Discount to market price
- 10 percent
Heard on business television between 16:20:31 - 16:23:31 IST.
- Cabinet/CCEA approved Fairfax Financial Holdings as the strategic buyer for 60.72% stake in IDBI Bank for just over Rs 52,000 crore at Rs 81 per share, a discount to the Rs 90 closing price.
- Analysts said the discount should not be compared to market price since only 5% of IDBI's float trades, and the government's valuation paper benchmarked the deal against comparable transactions like RBL, which happened at 1.06 times book.
- Government to retain about 15% stake and LIC around 20%, together 34%, but has agreed to transfer control to Fairfax, with board representation for government and LIC.
- Panelists said Fairfax may need to consolidate its other holdings like CSB Bank and IIFL, likely via a merger between CSB and IDBI over a glide path, subject to RBI approval.
- Guests said IDBI used its prolonged sale 'flux period' to clean up NPAs, build deposits and gain capital infusion, leaving it resilient, with new capital and management now expected to drive growth, including bancassurance synergy with LIC and support for semi/mid-corporate lending.
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Source: Live TV News Channel · 14 Oct 2026
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