The Government of India and LIC assess bids from Fairfax and Emirates NBD for a 60.7% stake in IDBI Bank, valued at USD 5.7 billion.
The strategic sale of a 60.7 per cent stake in IDBI Bank is progressing as the Government of India and the Life Insurance Corporation of India (LIC) assess revised financial bids from Canadian company Fairfax Financial Holdings and Dubai-based Emirates NBD. Currently under review, these bids will play a significant role in the disinvestment process, which is expected to be completed within a month.
According to sources, a senior panel of bureaucrats recently convened to review the status of this transaction. The ownership structure includes a 45.48 per cent stake held by the Government of India and a 49.24 per cent stake held by LIC.
The involvement of both Fairfax Financial Holdings, headed by Indian-born Canadian businessman Prem Watsa, and Emirates NBD positions them as strong contenders for acquiring a controlling stake in the bank. The valuation of the proposed acquisition is anticipated to be around USD 5.7 billion based on current market conditions. If successful, this transaction will mark one of the most substantial foreign investments in India’s banking sector.
At the time of reporting, IDBI Bank shares were trading at Rs 87.69, reflecting an increase of 4.31 per cent. Government sources indicated that the evaluation process is making headway, and efforts are underway to ensure the sale adheres to necessary procedures for completion.
