The Union Cabinet has approved the strategic sale of a 60.72% stake in IDBI Bank to 10955230 Canada Inc., a subsidiary of Canada’s Fairfax Financial Holdings, for ₹52,878.08 crore.
The transaction involves the Government of India’s 30.48% stake and Life Insurance Corporation of India’s 30.24% holding. Following the proposed sale, the government will retain 15% of IDBI Bank, while LIC will continue to hold 19%.
Fairfax’s offer of ₹81 per share exceeded the benchmark fair value of ₹75.99 per share. The transaction marks a significant milestone in India’s banking-sector divestment programme and is expected to be one of the largest foreign investments in the country’s financial-services sector.
The acquisition remains subject to applicable regulatory approvals and completion requirements.
Source: Reuters; Government of India.
