IDBI Bank shares plunged 7 percent in early trade on Thursday, October 15, after the Union Cabinet approved the sale of a 60.72 percent stake in the lender to Canada-based Fairfax Financial Holdings for Rs 52,878 crore. The sharp decline came as the approved acquisition price of Rs 81 per share represented a discount of around 11 percent to the stock's previous closing price.
IDBI Bank shares fell to around Rs 84 on Thursday, reversing much of Wednesday's 9 percent rally ahead of the government's announcement. Despite the latest decline, the stock was trading about 3.7 percent above Fairfax's acquisition price. The stock has declined 19.1 percent so far in 2026, compared with a 12.6 percent fall in the Nifty 50. At Thursday's trading price, IDBI Bank's market capitalisation stood at approximately Rs 90,567 crore.
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The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, on Wednesday approved the strategic sale of a controlling stake in IDBI Bank to a subsidiary of Fairfax Financial Holdings.
The transaction involves the sale of a 30.48 percent stake held by the central government and a 30.24 percent holding of Life Insurance Corporation of India (LIC), aggregating to 60.72 percent. Fairfax will pay Rs 81 per share, valuing the stake at Rs 52,878.08 crore. The acquisition price is substantially below Wednesday's closing market price of Rs 90.40, following the stock's sharp rally ahead of the announcement.