IDBI Bank share price: IDBI Bank shares surged more than 4% on Friday, December 12, after reports indicated that Fairfax Financial and Kotak Mahindra Bank have emerged as the leading contenders to acquire a majority stake in the lender from the Government of India and the Life Insurance Corporation of India (LIC). As per media reports, both shortlisted bidders are expected to submit their financial offers by the end of December.
Fairfax and Kotak move closer to submitting financial bids
The government and LIC are jointly divesting a 60.72% stake in IDBI Bank, a block estimated to be worth nearly USD 7 billion at current valuations. Toronto-based Fairfax Financial—led by Indian-Canadian billionaire Prem Watsa—has reportedly been assessing an all-cash bid that aligns with IDBI Bank’s prevailing market price. Media reports stated that Fairfax, which already holds a controlling interest in CSB Bank, has received Reserve Bank of India (RBI) approval as a “fit and proper” participant in the sale.
According to reports, the firm is weighing an all-cash offer ahead of the December-end deadline for the submission of binding financial bids.
Kotak Mahindra Bank, which is also on the shortlist, is believed to be exploring a cash-and-stock proposal. The bank has similarly obtained RBI clearance under the fit-and-proper framework. Both bidders were among the group that filed expressions of interest nearly two years ago when the process formally began.
Under the current plan, the Centre and LIC together intend to offload 61% in IDBI Bank—of which the government holds 30.48% and LIC 30.24%. For the financial year 2025–26, the Centre has set a disinvestment and asset monetisation target of ₹47,000 crore. The IDBI transaction is expected to be one of the largest contributors to this target, alongside other strategic divestment programmes.
As per exchange disclosures for the quarter ended September 30, the central government held a 45.48% stake in IDBI Bank, while LIC owned 49.24%. Together, the two promoters controlled 94.71% of the lender, leaving only 5.29% with the public.
IDBI Bank share price performance
IDBI Bank shares climbed 4.15% to touch ₹99.10 intraday on Friday. The stock now trades just 7% away from its 52-week high of ₹106.99 recorded in October 2025. It has also rebounded sharply from its 52-week low of ₹65.89 hit in January 2025, rising more than 50% since then.
However, the bank stock has declined over 1% in the past month. On a year-to-date basis, it is up 29%, while gaining 18% over the past one year. Over a five-year period, the bank has delivered multibagger returns of 141%.
Since the government first announced its divestment intentions three years ago, IDBI Bank shares have more than tripled in value.
