The Cabinet has cleared the sale of a 60.72% stake in IDBI Bank to a Fairfax Financial Holdings entity for ₹52,877.07 crore, according to Outlook Money, which updated its report on 14 October 2026. The buyer is 10955230 Canada Inc, a wholly owned entity of Fairfax. The winning bid was ₹81 per share, above the ₹75.99 benchmark.
Who sells
The Government of India sells 30.48% and LIC sells 30.24%. After the sale, the Centre and LIC together keep 34%. The report cites a Moneycontrol report for the position before the sale, with LIC at 49.24% and the Centre at 45.48%.
Open offer
Fairfax must make an open offer to minority shareholders. The report says the price, size and timetable are not yet disclosed, and it does not say the ₹81 price will apply to the open offer.
Conditions
Fairfax's capital is locked in for three years, and IDBI Bank keeps its name for at least three years after completion. Fairfax must merge CSB Bank with IDBI Bank or exit its CSB investment within two years. LIC must cut its IDBI stake to 15% within two years to meet RBI norms.
What is still to come
The share purchase agreement has not been signed. The report says it is expected before the end of 2026. Remaining regulatory and procedural steps are pending, and completion is expected before the end of the current financial year. The report gives no share price move for IDBI Bank.
Key numbers
- Stake sold: 60.72% (IDBI Bank)
- Deal value: ₹52,877.07 cr (Cabinet-cleared)
- Winning bid: ₹81 (Benchmark ₹75.99)
- Held after sale: 34% (Centre and LIC together)
What boards and CFOs should note
Three points stand out for finance teams. First, the price of ₹81 per share is above the ₹75.99 benchmark by about 6.6%, on the report's figures. Second, the conditions tie the deal to two other outcomes, the CSB Bank merger or exit and LIC's cut to 15%, each within two years. Third, the open offer terms are still open, so the full cost to Fairfax is not yet known.
Source: Outlook Money, 14 October 2026. This is a summary of a news report, published as general information. It is not legal, tax or investment advice.
This article is journalism and commentary. It is not a recommendation to buy or sell any security, and it is not professional advice. Read the full disclaimer.
