Centre Approves 60.72% Stake Sale In IDBI Bank To Fairfax For Rs 52,878 Crore
The 60.72 per cent stake being acquired by Fairfax will comprise a 30.48 per cent holding of the government and a 30.24 per cent stake held by the Life Insurance Corporation of India (LIC).
Canadian investment firm Fairfax Financial Holdings is preparing to take a 60.72% stake in IDBI Bank for ₹52,878 crore ($5.6 billion), representing the largest foreign direct investment (FDI) in India's banking sector. The Department of Investment and Public Asset Management (DIPAM) Secretary, Arunish Chawla, revealed that the transaction values IDBI Bank at around ₹87,100 crore.
This deal is 11% below IDBI Bank's closing share price of ₹90.40 on Wednesday. Following the sale, both the Indian government and the Life Insurance Corporation of India (LIC) will retain a combined 34% stake. The acquisition fulfills the government's disinvestment goals, with the Centre aiming to raise ₹80,000 crore through asset sales this financial year.
In addition to CSB Bank, Fairfax also owns interests in IIFL Capital Services, and it must either merge or divest its 40% stake in CSB Bank within two years of the IDBI Bank share purchase agreement.
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- Centre Approves 60.72% Stake Sale In IDBI Bank To Fairfax For Rs 52,878 Crore ndtv.com
- Cabinet approves Canada’s Fairfax as ‘strategic buyer’ of IDBI Bank for Rs 52,878 crore indianexpress.com
