IDBI Bank Shares Surge 10% On Fairfax Deal Progress Report

IDBI Bank shares jumped as much as 10.53% on Monday, touching an intraday high of Rs 90.90, up from the previous close of Rs 82.24. Trading volumes were heavy, with more than 7.2 crore equity shares changing hands across the NSE and BSE during the session. The stock later pared some of its gains and was trading 8.9% higher at around Rs 89.61.

The rally followed a report suggesting that the government is nearing acceptance of a revised offer from Canada-based Fairfax Financial for its stake in IDBI Bank, as reported by NDTV Profit, citing people familiar with the matter. According to the report, the deal could be finalised soon, with a few final clearances still pending.

Separate reports last week suggested Fairfax could be given up to two years to consolidate its banking holdings in India after the acquisition, while LIC exits its long-standing stake in the lender. Reuters has reported that the transaction could be worth more than $5 billion, which would make it one of the largest foreign investments in an Indian bank.

There is also a regulatory hurdle for Fairfax. RBI rules currently prevent an entity from owning and operating two separate Indian banks. Fairfax already holds a 40% stake in CSB Bank, which means it may have to sell that stake or merge the two lenders if the IDBI Bank acquisition goes through.

The proposed transaction would be the government's second attempt to sell its stake in IDBI Bank. The first attempt, announced in 2016, did not go through amid valuation concerns. LIC's stake in the lender was later reduced to its current level.

IDBI Bank had clarified in a statement on July 14, 2026 that it had not received any communication from the government regarding the finalisation of the strategic disinvestment process. The lender also said it had no role in the negotiations.

As of the June 2026 quarter, LIC held a 49.24% stake in IDBI Bank, while the President of India held 45.48%. Public shareholders held the remaining 5.29%.

IDBI Bank Share Price

Despite Monday's rally, IDBI Bank shares remain down 6% over the past year and 14% so far in 2026. The stock has gained more than 5% over the past month but has fallen 8.6% in the last five trading sessions.

Over a longer period, the stock has delivered returns of more than 140% in five years and over 45% in three years, according to NSE data.

IDBI Bank touched a 52-week high of Rs 118.38 on January 5, 2026, and a 52-week low of Rs 61.01 on March 30, 2026. Its market capitalisation stood at around Rs 94,341 crore on Monday.

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