India approves Fairfax’s ₹52,878-crore purchase of controlling stake in IDBI Bank
publishers 33articles 63first reported 14 Oct, 10:47 UTCdeveloping since 14 Oct · 9 editions
India’s Cabinet has approved the sale of a 60.72% stake in IDBI Bank to Canada’s Fairfax Financial Holdings for ₹52,878 crore, a transaction the government said would be the country’s largest foreign direct investment in the financial sector.
Fairfax will acquire a 30.48% stake from the Indian government and 30.24% from Life Insurance Corporation of India, transferring control of the lender to the Canadian company. After the transaction, the government will retain 15% of IDBI Bank and LIC about 19%.
The purchase remains subject to completion requirements and regulatory approvals, including a “fit and proper” assessment by the Reserve Bank of India. Fairfax must also make an open offer to minority shareholders. The Hindu reported that Fairfax, which owns a stake in CSB Bank, will be required to merge that holding with IDBI Bank or exit it within two years. The transaction is expected to be completed by the end of the current fiscal year in March 2027.
The government said IDBI Bank had previously required repeated capital infusions because of its poor financial condition. Finance Minister Nirmala Sitharaman described the deal as a restructuring rather than a disinvestment because the government will retain a minority stake.
Fairfax offered ₹81 per share, above the government’s assessed average fair value of ₹75.99 but below IDBI Bank’s Wednesday closing price of ₹90.39. The bank’s shares fell more than 7% on Thursday following the announcement.
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Written from 4 articles, 4 with the publisher's own text; 4 independent newsrooms once syndicated copies count as one; this version written 24 h after the record first saw the story; the editor kept it as written.
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