The government is progressing with the strategic sale of IDBI Bank, planning to call financial bids between October and December of FY26. This sale, in partnership with LIC, involves offloading a combined 60.72% stake aimed at fetching around ₹50,000 crore.
The Centre and LIC are jointly executing the strategic divestment of IDBI Bank, with financial bids expected to be invited in Q3 FY26. Combined, they hold over 94% of the bank, with the Centre owning 45.48% and LIC holding 49.24%. The sale covers a total 60.72% stake and is projected to raise around ₹50,000 crore.
According to DIPAM Secretary Arunish Chawla, due diligence by prospective bidders is complete, and all data room protocols have been finalised.
Some of the interested buyers reportedly include Fairfax India Holdings, Emirates NBD, and Kotak Mahindra Bank. With strategic interest around IDBI Bank building, the divestment remains a key priority in the government’s disinvestment roadmap and is expected to conclude within FY26.
Read More: LIC Signs $1 Billion in Bond Derivatives Amid Rising Hedging Activity!
Parallel efforts are underway to reduce the government’s holding in LIC. The Request for Proposal (RFP) process has concluded, and merchant bankers have been appointed for a tenure of 3 years, extendable to 5.
As of now, the Centre holds a 96.5% stake after listing 3.5% in May 2022, which raised ₹21,000 crore. To meet SEBI's requirement of 10% minimum public shareholding by May 16, 2027, the government may divest another 2-3% in FY2,6, depending on market conditions.
To support economic momentum during global uncertainties, the Finance Ministry is conducting weekly capital expenditure reviews of Public Sector Enterprises (PSEs). The focus remains on achieving performance milestones and maintaining investments to aid growth throughout FY26.
On August 4, 2025, IDBI Bank share price opened at ₹90.98 on NSE, above the previous close of ₹90.19. During the day, it surged to ₹91.60 and dipped to ₹90.00. The stock is trading at ₹91.16 as of 10:33 AM. The stock registered a moderate gain of 1.08%.
Over the past week, it has declined by 2.00%, over the past month, it has declined by 8.16%, and over the past 3 months, it has moved up by 15.15%.
The IDBI Bank stake sale marks a significant move in the Centre’s disinvestment agenda. With the potential to raise ₹50,000 crore and attract major global and domestic bidders, the upcoming financial bidding phase is a crucial step towards finalising the transaction within FY26, alongside progress in LIC stake dilution.
Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or 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 securities are subject to market risks. Read all related documents carefully before investing.
Published on: Aug 4, 2025, 1:37 PM IST
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