IDBI Bank Disinvestment: Govt Reviews Revised Bids For 60.72% Stake
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IDBI Bank’s strategic disinvestment is progressing at a steady pace. The government is evaluating revised bids from Fairfax Financial Holdings and Emirates NBD for a 60.72% stake.
The government is reviewing revised bids from Fairfax Financial Holdings and Dubai-based Emirates NBD for the strategic sale of a 60.72% stake in IDBI Bank.
The stake is being sold by the government and Life Insurance Corporation of India (LIC), which together hold 94.71% of the bank.
At the close of trading on 25 September, the IDBI Bank share price stood at ₹84.40 on the National Stock Exchange (NSE). The IDBI Bank stock gained about 2.18% during the session.
What Is The Current Status Of IDBI Bank Disinvestment?
The Centre is currently reviewing the financial offers submitted by Fairfax Financial Holdings and Emirates NBD, which were revised in July after the strategic sale process was restarted earlier this financial year.
The Centre and LIC together hold a 94.71% stake in IDBI Bank. The government owns 45.48%, while LIC holds 49.24%.
Under the proposed strategic sale, the Centre plans to sell 30.48%, and LIC plans to divest 30.24%, taking the combined stake on offer to 60.72%.
Who Are The Two Bidders For IDBI Bank?
Fairfax Financial Holdings, backed by investor Prem Watsa, and Emirates NBD are the two investors competing for the stake. Both already have a presence in India's banking sector. Fairfax owns a 40% stake in private-sector lender CSB Bank, while Emirates NBD acquired a majority stake in RBL Bank earlier this year.
The two bidders have also received security clearance from the Ministry of Home Affairs and the Reserve Bank of India's “Fit and Proper” assessment.
Why Was The IDBI Bank Sale Delayed Earlier?
The strategic sale process dates back to the Expression of Interest issued in October 2022. Following regulatory clearances and due diligence, financial bids were submitted on 6 February 2026. However, the bids were below the reserve price determined by the Inter-ministerial Group on disinvestment. The government subsequently put the process on hold.
The sale was revived this financial year, with revised bids invited in early July. The two bidders submitted their revised financial offers on 13 July.
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This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Vishwa has spent 10+ years across fintech and FMCG doing what most people miss, connecting the dots, catching trends before they trend, and finding the angle nobody else thought to ask about.
At Kotak Neo, she drives content strategy for neoshorts, Kotak News Desk, and Investing Guide, turning market noise into something worth reading.
When she's not decoding markets, she trades charts for canvases, chasing art, painting, and architecture across cities she's yet to explore.
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