The mood around IDBI Bank turned energetic as the stock jumped over 4% after reports confirmed that Fairfax Financial and Kotak Mahindra Bank are moving forward in the race to acquire a 60.72% stake in the lender. With the Indian stock market closely tracking large divestment developments, the IDBI Bank stake sale has quickly become one of the most-watched events in the financial sector.
This combination of a major stake sale, interest from top financial groups, and the government’s divestment drive has sparked fresh momentum in IDBI Bank share price, IDBI Bank news, and IDBI Bank stake sale updates across the market.
Market Performance: IDBI Bank Share Price Reacts to Bidding Progress
The stock saw a sharp move, reflecting growing investor interest in the divestment story.
- IDBI Bank shares jumped 4.15%, reaching an intraday high of ₹99.10.
- The stock now trades just 7% below its 52-week high of ₹106.99.
- It has rallied more than 50% from its 52-week low of ₹65.89 touched in January 2025.
- Over the year-to-date period, the stock is up 29%, and 18% over the last year.
- The long-term picture remains strong, with 141% returns over five years, turning it into a notable multibagger in the small-cap banking space.
The divestment process itself has been a strong catalyst, with the stock tripling since the government first announced the stake-sale intention three years ago.
Main News: Fairfax & Kotak Advance Toward Financial Bids
The central government and LIC together are divesting a 60.72% stake in IDBI Bank. At current valuations, this block is estimated at around USD 7 billion.
Two bidders are now moving forward:
1. Fairfax Financial Holdings
- Has been assessing an all-cash offer aligned with IDBI Bank’s prevailing price.
- Received RBI approval under the fit-and-proper framework.
- Already holds a controlling interest in another Indian bank, strengthening its eligibility.
2. Kotak Mahindra Bank
- Reportedly exploring a cash + stock offer for the stake.
- Also holds RBI clearance under the fit-and-proper eligibility norms.
- Both bidders had submitted expressions of interest nearly two years ago when the process began.
Financial bids are expected to be submitted by the end of December, marking a crucial phase in IDBI Bank's divestment journey.
IDBI Bank Stake Sale: Promoter Holdings & Divestment Structure
The stake sale combines holdings of both promoters — the Government of India and LIC.
- Total divestment size: 60.72%
- Government holding: 30.48%
- LIC holding: 30.24%
- Promoters’ total control: 94.71%
- Public shareholding: 5.29%
This transaction is one of the biggest contributors to the Centre’s ₹47,000 crore disinvestment and asset monetisation target for FY26.
Company Details: IDBI Bank’s Position & Shareholder Breakdown
As per the September quarter disclosures:
- Central Government stake: 45.48%
- LIC stake: 49.24%
- Combined promoter holding: 94.71%
The stake sale is expected to reshape the bank’s ownership structure significantly, opening the door to a strategic buyer who will gain management control.
For both bidders, IDBI Bank’s strong retail presence, improving asset quality, and digital banking push make it an attractive acquisition.
IDBI Bank Share Price: Performance Snapshot
The stock has been volatile in the short term but strong across longer time frames.
Short-Term Movement
- Down 1% in the past month
- Continues to hover near 52-week levels
Mid-Term Trend
- Up 29% in 2025 (YTD)
- Up 18% over one year
Long-Term Performance
- Delivered 141% returns over five years
- The stock has tripled since the government first announced its divestment roadmap
The combination of stake-sale progress and strategic interest has supported the stock through multiple market cycles.
Summary
The IDBI Bank stake sale has entered a decisive phase, with Fairfax and Kotak advancing toward binding financial bids. With a 60.72% stake worth nearly USD 7 billion on the block, this is one of the most significant banking divestments in India.
Key highlights include:
- IDBI Bank share price jumps 4.15% amid stake sale momentum
- Fairfax is evaluating an all-cash bid
- Kotak is considering a cash-and-stock offer
- Government & LIC jointly divesting 60.72%
- The stock trades close to its 52-week high
- Strong long-term returns exceeding 141% in 5 years
As the December deadline for bid submissions approaches, IDBI Bank remains at the center of India’s strategic banking divestment program.
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