IDBI Bank shares up by more than 3% after reports of Fairfax in race to acquire majority stake

IDBI Bank shares are up today. At 1:55 p.m. IST, 12^th December, 2025 it is up by 3.76%, at Rs 98.73 per share. Nifty 50 index is up by 0.50% at this time. IDBI bank shares are gaining after reports that Fairfax Financial of Canada is in the race to buy majority stake in the bank from the Government and LIC.

Government and LIC currently own 60.72% stake in the bank

Government and LIC currently own around 60.72% stake in the company. At the prevailing market price ,this stake is worth around $ 7.2 billion. Kotak Mahindra Bank is also in the fray to acquire this stake in the bank. Emirates NBD was also in the race earlier but it is now acquiring a controlling stake in RBL. The stake sale in IDBI by Government and LIC is likely to be completed in January 2026.

IDBI Bank shares have gained more than 28% this year

Year-to-date (YTD) in 2025, IDBI Bank shares have gained 28.52%. Nifty 50 index has gained 9.62% in this period. IDBI Bank shares have outperformed the Nifty 50 index by around 19% this year. Nifty Private Bank index has given YTD return of 16.18% in 2025. IDBI bank shares have outperformed the Nifty Private Bank index by more than 12% this year. Nifty Bank Index has gained 17.48% YTD in 2025. IDBI Bank shares have also outperformed the Nifty Bank index by around 11% in 2025.

IDBI Bank shares trading at a lower P/E multiple than many industry peers

IDBI Bank shares are currently trading at a 12-month trailing price-to-earnings (P/E) ratio of 11.45. Banks that make up Nifty Bank index are trading at an average P/E ratio of around 16.7. Banks that make up Nifty Private Bank index are currently trading at an average P/E ratio of 20.29.  IDBI Bank shares may therefore be undervalued when compared to many of its peers in the industry.

Disclaimer : This content is only for informational purpose. It does not make any recommendation to act or invest.

Source: NSE