IDBI Bank Sale Process Raises Deal Value by ₹3,917 Crore, Finance Ministry Clarifies!

The Ministry of Finance has defended the valuation and bidding process for the sale of IDBI Bank, stating that the procedure resulted in an additional ₹3,917 crore in transaction value, as per a Business Standard news report.  

The ministry said the Core Group of Secretaries on Disinvestment (CGD) was authorised to handle procedural matters and take decisions on the final round of bidding.  

The initial bidding round was conducted by the Department of Investment and Public Asset Management (DIPAM) in FY26. The bids received during this round were not approved, and the ministry said the first round consequently ceased to apply.  

It also clarified that the reserve price was not changed at any stage. 

CGD Reviewed Valuation Methodology 

The Cabinet Committee on Economic Affairs (CCEA) had delegated special powers to the CGD to review the valuation exercise. The group examined the methodology in April 2026, before bids were invited for the best-offer round. 

Two independent advisers were involved in the valuation, using separate methods. The transaction adviser handled the business valuation, with experts applying the Market Multiple Method.  

Updated valuations began in May, after IDBI Bank's financial accounts for the year ended March 31, 2026, became available. The ministry said the process was double-blind. Bidders did not have access to the valuation, while the valuation agencies could not see the bids.  

The CGD reviewed both before deciding whether the offers were reasonable. 

Tax Indemnity and Additional Transaction Value 

The valuation also accounted for disputed tax demands through an indemnity provision requested by qualified bidders. The ministry put the potential liability at ₹627 crore, adding that reimbursement would apply only if additional tax demands were paid. 

It said the bid-discovered price increased the transaction value by ₹3,917 crore for the government and Life Insurance Corporation of India (LIC). 

Fairfax Financial Deal Valued at ₹53,000 Crore 

On October 14, the CCEA approved the sale of a combined 60.72% stake in IDBI Bank to Canadian investment firm Fairfax Financial Holdings. The transaction is valued at approximately ₹53,000 crore, with the approved bid price at ₹81 per share. 

The government and LIC will retain residual stakes in the bank following the sale. 

Read More: Karur Vysya Bank Share Price in Focus as Branch Network Reaches 929! 

IDBI Bank Share Price Performance  

As of October 30, 2026, 2:30 pm, IDBI Bank share price was trading at ₹79.93, a 0.10% decrease from the previous closing price. 

Conclusion  

The approved bid stands at ₹81 per share, with the government citing an additional ₹3,917 crore in transaction value. The government and LIC will continue to hold residual stakes. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/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 the securities market are subject to market risks, read all the related documents carefully before investing.