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Union Cabinet approves sale of 60.72% stake in IDBI Bank to Canada’s Fairfax Financial Holdings

Wednesday, 14 October 2026 at 9:04 pm ISTSource: CapitCue, from media reports listed below

The Cabinet Committee on Economic Affairs cleared Fairfax’s bid of ₹81 a share, about ₹52,878 crore for the government’s 30.48% and LIC’s 30.24%. IDBI Bank closed at ₹90.39, up 8.98%.

The Union Cabinet, through its Cabinet Committee on Economic Affairs (CCEA), has approved the strategic sale of a 60.72% stake in IDBI Bank to Canada’s Fairfax Financial Holdings, media reports said on Wednesday, 14 October 2026. The buyer is a Fairfax subsidiary. The deal is worth about ₹52,878 crore at ₹81 a share, and reports describe it as the biggest strategic disinvestment since Air India and the largest foreign investment in India’s banking sector.

What has been approved

The stake being sold is 60.72% of IDBI Bank: 30.48% held by the Government of India and 30.24% held by LIC. Management control passes to the buyer. After the sale the government will keep about 15% and LIC about 19%, a combined 34%. Reports give the total as ₹52,878 crore; one outlet quotes the government’s wording as ₹52,878.08 crore and another as ₹52,877.07 crore, so the exact figure should be checked against the government’s own press note.

The price

Fairfax’s winning bid is ₹81 a share. Reports say this is above a benchmark fair value of ₹75.99 a share, worked out as the average of two independent valuations, and that this was the basis on which the government judged the offer reasonable. An earlier round of the sale failed because the bids fell short of the reserve price.

What happens next

Reports say Fairfax will have to make an open offer to the minority shareholders of IDBI Bank after the transaction. Fairfax also holds about 40% of CSB Bank, which is to be merged with IDBI Bank within two years. The buyer must go through the Reserve Bank of India’s “fit and proper” assessment and submit a roadmap for meeting regulatory conditions, so the deal still needs regulatory steps before control passes. No completion date was given in the reports CapitCue read.

How the share has moved

IDBI Bank closed at ₹90.39 on the NSE on Wednesday, up 8.98% from ₹82.94, after touching ₹93.60 during the day, according to CapitCue’s own data. One media report says the share rose about 13% at its peak. The offer price of ₹81 a share is below the market price. CapitCue is not saying what the share should do next.

The process began in October 2022, when the government and LIC invited expressions of interest. Five parties showed interest, four qualified and two submitted final bids, according to a report.

This story was compiled by CapitCue from the media reports listed below and its own market data. The Cabinet’s official statement was not available to CapitCue at the time of writing, and some figures differ slightly between reports. CapitCue provides information only; it is not investment advice.

Sources: The Tribune: Cabinet approves Fairfax’s ₹52,878-crore bid for IDBI Bank · Business Today: Centre approves Fairfax Financial’s ₹52,878 crore bid for 60.72% stake in IDBI Bank · The Statesman: CCEA approves sale of 60.72% stake in IDBI Bank to Fairfax entity · Zee Business: IDBI Bank disinvestment, CCEA approves ₹52,878 crore Fairfax bid · Telangana Today: CCEA approves 60.72pc stake sale in IDBI Bank for ₹52,878 crore

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