The Cabinet approved the sale of 60.72% of IDBI Bank by the government and LIC to a Fairfax company for ₹52,878 crore, or ₹81 a share. It is India's biggest-ever foreign investment in finance. But the share was already trading above ₹81, so with no premium on offer it fell about 7%. At ₹81 the bank is valued at under 10 times last year's profit.
On 14 October the Cabinet approved the sale. The government sells 30.48% and LIC sells 30.24% to a Canadian company backed by Fairfax Financial, Prem Watsa's group. The price is ₹81 a share, above the ₹75.99 fair value set by two independent valuers, for ₹52,878 crore in total. Afterwards the government keeps about 15% and LIC about 19%. The finance minister called it the largest foreign investment ever in India's financial sector.
IDBI closed at ₹83.45 on 14 October, already above the deal price. Many traders had hoped for a higher price or a bigger open offer. Once ₹81 was confirmed, the share fell about 7% on 15 October. It is well below its 52-week high of about ₹116.
The bank that once had huge bad loans is now steadily profitable. Profit was ₹5,763 crore in 2023-24, ₹7,589 crore in 2024-25 and ₹9,211 crore in 2025-26. April-June 2026 profit was ₹2,131 crore. At ₹81 the whole bank is valued at about ₹87,000 crore, under 10 times last year's profit.
Under takeover rules the buyer usually has to make an open offer to other shareholders, so its price and size matter. RBI and other approvals are still needed. Also watch what a private owner does with the bank: growth plans, new management and possible job changes. Only about 5% of shares are with the public today, so trading volumes are thin and prices can swing sharply.
| Cabinet approves 60.72% sale to Fairfax entity for ₹52,878 crore at ₹81/share; fair value ₹75.99 | 14 Oct 2026 |
| IDBI fell about 7% | 15 Oct 2026 |
| Close ₹83.45; 52-week high ₹116 | 14 Oct 2026 |
| Consolidated profit ₹5,763 / ₹7,589 / ₹9,211 crore; Q1 FY27 ₹2,131 crore | FY24-FY26 |
| Government + LIC holding 94.71% | 30 Jun 2026 |
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