IDBI Bank stake sale: IDBI Bank share price crashed over 6.57% in Thursday's trading session after government's decision to sell over 60.72% stake in the bank to Canada's Fairfax Financial Holdings.
IDBI Bank shares opened at ₹89.86 per share on NSE today, as compared to previous close of ₹90.39 on Wednesday and touched an intraday low of ₹83.62 on 14 October.
Meanwhile, LIC share price rose nearly 1% on NSE, touching an intraday high of ₹401.90 per share on Thursday.
The Cabinet Committee on Economic Affairs (CCEA) on Wednesday cleared 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 transaction is expected to be one of the biggest foreign investments in India’s banking industry.
The proposed deal comprises the Centre’s 30.48% stake in IDBI Bank and Life Insurance Corporation of India’s (LIC) 30.24% holding. Following the completion of the transaction, the government is likely to retain a 15% stake in the bank, while LIC will continue to hold 19%, taking their combined shareholding to 34%.