The Indian government, along with LIC, is set to sell its majority stake of 60.72% in IDBI Bank, opening the race for strategic investors. The deadline for financial bids is slated for the end of December, with the process expected to extend into early January.
In FY 2025, IDBI Bank reported a total income of ₹34,000 crore and a net profit of ₹7,588 crore, underlining its financial strength ahead of the stake sale. The combined stake being sold is valued at roughly $7 billion at current market prices. The bank’s market capitalization has surged to ₹1.02 lakh crore, with its stock rising nearly 25% this year.
Key Players in the Bidding:
Toronto-based Fairfax Financial, founded by Indian-origin Canadian billionaire Prem Watsa, is reportedly leading the race with an all-cash offer. Kotak Mahindra Bank is also in the fray, considering a combination of cash and shares for its bid. Both had previously shown interest two years ago and were shortlisted for the purchase. Emirates NBD had expressed interest but is reportedly re-evaluating after a recent stake acquisition in RBL Bank.
The government first signaled its intent to divest in IDBI Bank three years ago. Since then, the stock has more than tripled in value, reflecting strong market confidence. On Friday, shares traded at ₹97.85 on BSE, up 2.84%, bringing the market cap to ₹1,05,212 crore.
The sale is expected to be one of the largest divestments of a public-sector bank in India, potentially fetching the government around ₹50,000 crore. With leading financial players competing for control, the deal is set to reshape the strategic landscape of India’s banking sector.
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