Fairfax To Acquire 60.72% Stake In IDBI Bank For ₹52,878 Crore
Canadian billionaire Prem Watsa's Fairfax Financial Holdings is set to acquire a 60.72% stake in IDBI Bank for ₹52,878 crore ($5.6 billion), marking a major foreign investment in India's banking sector. Department of Investment and Public Asset Management Secretary Arunish Chawla said the transaction values the Mumbai-based lender at approximately ₹87,100 crore. The deal represents an 11%…
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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Also reported by 3 other outlets
- IDBI Bank Stake Sale For ₹52,878 Crore, How Nine-Year Journey From RBI Restrictions To Fairfax Takeover Unfolded freepressjournal.in
- 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
