IDBI Bank Share Price in Focus; Government Approves Fairfax Deal for 60.72% Stake

The Centre has approved Fairfax Financial Holdings' group entity, 10955230 Canada Inc., as the buyer of a 60.72% stake in IDBI Bank. The stake includes 30.48% held by the government and 30.24% held by LIC. 

Deal Valued at ₹52,878 Crore 

The agreed purchase price is ₹52,878.08 crore. After the sale, the government will hold 15% in IDBI Bank, while LIC will retain 19%. 

The buyer must now present its credentials to the Reserve Bank of India and submit a plan to meet the required regulatory conditions. The sale is not yet complete. 

Why the Government Accepted the Bid? 

Two independent valuation agencies put IDBI Bank's average fair value at ₹75.99 per share. Fairfax's winning bid of ₹81 per share was higher than this benchmark and the estimates of both agencies. 

The government used two methods to value the bank: comparing it with other public sector banks and assessing its assets and liabilities. It did not rely on the bank's stock market price because the shares had seen wide price swings during the valuation period. 

What Happens to the Remaining Shares? 

The government and LIC will withdraw their nominees from IDBI Bank's board after the transaction and remain shareholders. The government may sell its remaining 15% stake through the open market under a separate process. 

Read More: Leela Palaces Share Price in Focus After Q2 FY27 Earnings Results; Q2 Profit Rises 27%! 

IDBI Bank Share Price Performance 

As of October 15, 2026, at 3:30 PM, IDBI Bank share price closed at ₹83.45 per share, reflecting a 7.68% decline from the previous trading session. 

Conclusion 

The government has approved Fairfax's group entity as the buyer of its and LIC's combined 60.72% stake in IDBI Bank for ₹52,878.08 crore. RBI clearance is the next step before the sale can be completed. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing. 

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