Fairfax Set to Acquire 60.72% Stake in IDBI Bank in A ₹53,000 Crore Deal: Reports

The Centre has reportedly selected Fairfax Holdings as the successful bidder for the IDBI Bank privatisation, paving the way for one of India's biggest disinvestment deals. According to multiple media reports, the Canadian investment firm has revised its offer to ₹81 per share, higher than its earlier bid of ₹75, prompting the government to move ahead with the stake sale.

If completed, the transaction will see Fairfax acquire a 60.72% stake jointly held by the Government of India and Life Insurance Corporation of India (LIC) in a deal valued at nearly ₹53,000 crore ($5.5 billion). The acquisition is expected to become the largest foreign investment in an Indian bank.

Fairfax Raises Bid for IDBI Bank Stake

As per news reports, the government finalised Fairfax after discussions held at the Finance Ministry. At the revised offer price of ₹81 per share, the government could raise around ₹26,620 crore by selling its 30.48% stake in IDBI Bank.

LIC, which owns just under 50% of the lender, is also expected to divest 30.24%, generating nearly ₹26,440 crore. Following the acquisition, Fairfax will also be required to make an open offer to public shareholders under SEBI regulations.

The deal follows a temporary suspension of the privatisation process in March 2026 after initial bids reportedly fell below the government's reserve price.

Regulatory Approvals to Be the Next Key Step

Before the transaction is completed, Fairfax will need to obtain several regulatory clearances. These include approval from the Reserve Bank of India (RBI) under its 'fit and proper' criteria, as well as clearance from the Competition Commission of India (CCI) and other statutory authorities.

Fairfax already owns a 40% stake in CSB Bank through its Indian subsidiary. Market participants expect regulators to examine the implications of Fairfax holding significant stakes in two Indian banks before granting final approval.

IDBI Bank Share Price Performance 

IDBI Bank share price closed at ₹86.54 on the NSE on Tuesday, up 2.9% for the day. The stock has gained around 42% since its March 31 low, reflecting investor optimism surrounding the privatisation process.

Conclusion

The proposed acquisition marks a major milestone in the government's disinvestment programme and could set a new benchmark for foreign investment in India's banking sector. If the required regulatory approvals are secured, Fairfax's acquisition of IDBI Bank will not only reshape the lender's ownership structure but also provide a significant boost to the Centre's asset monetisation target for FY27.

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