IDBI Bank stake sale: IDBI Bank and LIC share price will remain in focus on Thursday, 15 October, after the government's decision to sell 60.72% stake in the bank to Canada's Fairfax Financial Holdings.
The Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved the sale of a 60.72% stake in IDBI Bank to Fairfax Financial Holdings, founded by Indian-born Canadian billionaire Prem Watsa, for ₹52,877 crore. The deal is set to rank among the largest foreign investments in India’s banking sector.
The proposed transaction includes the government’s 30.48% stake in IDBI Bank and Life Insurance Corporation of India’s (LIC) 30.24% holding. Upon completion of the sale, the government is expected to retain a 15% stake in the lender, while LIC will hold 19%, taking their combined shareholding to 34%.
Union Minister Ashwini Vaishnaw said the strategic partnership would enable fresh capital to flow into IDBI Bank while opening up growth opportunities for micro, small and medium enterprises (MSMEs), small businesses and aspiring entrepreneurs.
Fairfax has a significant investment presence in India through Fairfax India Holdings Corporation, which reported assets worth $3.8 billion as of June 30, 2026. Its other investments in the country include non-banking financial services firm IIFL Capital and online brokerage platform 5paisa.