Fairfax plans to combine IDBI Bank, Digit Insurance and IIFL Capital Services into an integrated financial services entity, subject to regulatory approvals
DIPAM Secretary Arunish Chawla discusses the ₹52,878 crore IDBI Bank stake sale, Fairfax's RBI clearance, disinvestment plans, capital receipts and the government's dividend outlook.
The total stake sale approved in IDBI Bank to Canada-based Fairfax Holdings is ₹52,878 crore, with Life Insurance Corporation of India (LIC) and the government selling a combined 60.72 per cent stake
The government used an independent valuation benchmark of ₹75.99 per share after rejecting an earlier bid of ₹75 that fell short of the ₹94.42 reserve price
Known as Canada's Warren Buffett, the Hyderabad-born investor has made India a long-term bet, with the proposed IDBI Bank acquisition marking his latest big move
The IDBI Bank stake sale announcement, which came after market hours on Wednesday, marks the biggest foreign investment in India's financial services sector.
Fairfax's acquisition of a 60.7% stake in IDBI Bank for nearly $6 billion comes as Blackstone explores IIFL Finance and Japan's MUFG studies options to gain majority control of Shriram Finance
At the bourses, IDBI Bank stock has been an underperformer and has slipped 13.4 per cent year-till-date (YTD) till October 14 as compared to the NSE 500 index that lost 7.8 per cent during this period
Fairfax Financial Holdings Ltd., led by Canadian billionaire Prem Watsa, is set to acquire nearly 61 per cent stake in IDBI Bank for $5.6 billion, marking the largest foreign investment in banks
IDBI Bank privatisation news: A Bloomberg report said that Fairfax Financial Holdings, founded by Indian-born Canadian billionaire Prem Watsa, might raise its per-share bid by a few rupees.
IDBI Bank share price: Notably, the sentiment has been dented after the government's IDBI Bank privatisation bid failed, as the bids from two potential buyers were below the reserve price
IDBI Bank share price today: The sell-off comes amid reports that the government could scrap the divestment plan after bids fell short of the reserve price
Fairfax has moved ahead in the race to buy a majority stake in IDBI Bank, with Kotak Mahindra Bank still in the fray as the government and LIC prepare to finalise bids for the lender's sale
A government agency is expected to formally open the bidding process as soon as this month, in what could be the biggest state-backed disposal of a bank stake in decades
Dipam Secretary Arunish Chawla said IDBI Bank privatisation should conclude by March 2026 as bidders complete due diligence, with FY26 disinvestment proceeds set to exceed targets
IDBI Bank share price gained 4 per cent today to hit a high of ₹104.40 on the BSE in Thursday's intraday trade. The stock is trading close to its 52-week high level of ₹107.98
