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Government explained valuation methodology used to arrive at fair price for IDBI Bank stake sale, stating it is fully satisfied with the fair valuation reached
By ScoutQuest · · 1 min read
- Pre-EOI unimpacted stock price
- Rs 42.40 paisa
- Book value per RBI guidelines
- Rs 55.31 paisa
- Government capital infusion FY17-FY21
- 27,000 crore rupees
Heard on business television between 14:40:36 - 14:43:36 IST.
- Unimpacted pre-EOI stock price was only Rs 42.40, considered unreliable due to narrow float (5.3%) causing wide price fluctuations.
- Two fair valuations were computed: fair market price via the market multiple method (moon charts) comparing IDBI with public sector banks, and fair asset price using March 2026 audited balance sheet converting assets/liabilities to fair market replacement value.
- Book value per RBI guidelines was only Rs 55.31, much lower than the computed fair asset value.
- The average of the two fair valuations was taken as the benchmark price, and the CGD (headed by the Cabinet Secretary) compared this benchmark with bid offers to confirm the winning bid was fair.
- Government infused around Rs 27,000 crore into IDBI Bank between FY17 and FY21, context raised regarding whether current valuation is fair.
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Source: Live TV News Channel · 15 Oct 2026
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