1 week ago
Centre May Approve Fairfax Bid for 60.72% IDBI Stake
The Indian government and Life Insurance Corporation of India want to sell most of IDBI Bank.
Fairfax Financial Holdings may buy the stake, but the decision has not been formally announced.
The government could approve the bid within a week.
Emirates NBD also made an offer.
Both companies had to improve their offers because their first bids were below the government’s reserve price.
The stake for sale equals 60.72% of IDBI Bank.
It is worth about ₹56,500 crore, or $6.1 billion, based on the bank’s share price.
The sale process began in 2021 and has faced regulatory and procedural delays.
Investors pushed IDBI Bank’s share price higher because the sale may finally proceed.
The Centre may approve Fairfax Financial Holdings’ revised bid for a 60.72% stake in IDBI Bank within a week.
Fairfax and Emirates NBD submitted revised offers after their initial bids fell below the government’s reserve price.
The government plans to sell 30.48% and Life Insurance Corporation of India plans to sell 30.24%.
The stake is valued at about ₹56,500 crore, or approximately $6.1 billion, at Monday’s closing price.
IDBI Bank shares rose 6.89% to ₹87.93 after investors welcomed the possible revival of the long-delayed sale.
- Who
- The Centre, Life Insurance Corporation of India, Fairfax Financial Holdings, Emirates NBD and IDBI Bank are involved; Fairfax is led by Prem Watsa.
- What
- The Centre may approve Fairfax’s revised proposal to acquire a 60.72% stake in IDBI Bank.
- Where
- The transaction concerns IDBI Bank in India.
- When
- The approval could come within a week; the sale process began in 2021 and was paused in March.
- Why
- The government and Life Insurance Corporation of India are pursuing a strategic sale, while revised bids were submitted after initial offers fell below the reserve price.
Key facts
- Stake offered
- 60.72% of IDBI Bank
- Government stake for sale
- 30.48%
- Life Insurance Corporation of India stake for sale
- 30.24%
- Potential buyer
- Fairfax Financial Holdings
- Competing bidder
- Emirates NBD
- Estimated value
- About ₹56,500 crore, or roughly $6.1 billion
- Share-price reaction
- IDBI Bank closed at ₹87.93 on the BSE after rising 6.89%
Sources
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