IDBI Bank Strategic Restructuring Approved; Fairfax Unit to Acquire 60.72%
The Ministry of Finance has announced the strategic restructuring of IDBI Bank Ltd., with the Cabinet Committee on Economic Affairs (CCEA) approving the sale of an aggregate 60.72% equity stake. M/s 10955230 Canada Inc. (parent M/s Fairfax Financial Holdings Ltd.) has been approved as the Strategic Buyer for a purchase consideration of ₹52,878.08 crore. This stake includes 30.48% from the Government of India (GoI) and 30.24% from LIC. The process involved a two-stage competitive bidding process. Initial bids had fallen short of the reserve price, leading to a revised bidding process. The unimpacted pre-EoI stock price was ₹42.40 per share, while the impacted price before initial bids was ₹108.12 per share.
Key Highlights
- Fairfax Financial Holdings' unit approved as strategic buyer for IDBI Bank.
- Acquisition of 60.72% stake for ₹52,878.08 crore.
- Government and LIC to divest their stakes in IDBI Bank.
- Strategic restructuring aims to improve the bank's financial health.
- Bidding process involved multiple stages and qualified bidders.
Price Impact
More from IDBI