Fairfax Financial Holdings and Emirates NBD Submit Bids for IDBI Bank; Share Trade in Positive Territory

New Delhi, July 14: The government has received revised financial bids for the strategic sale of IDBI Bank from Fairfax Financial Holdings and Emirates NBD, sources said on Tuesday.

A final decision on the successful bidder will be taken once the financial bids are opened, which is likely very soon, sources added.

According to sources, both the bidders have experience in the Indian banking sector, with Dubai-based Emirates NDB acquiring RBL Bank earlier this year and billionaire investor Prem Watsa-backed Fairfax Financial already holding a 40 per cent stake in the private-sector CSB Bank.

Both the bidders already have security clearance from the Ministry of Home Affairs (MHA) and ‘Fit and Proper’ assessment from the RBI.

The government and LIC were together looking to sell 60.72 per cent in IDBI Bank and had floated an Expression of Interest (EoI) in October 2022.

Financial bids came on February 6. However, the financial bids from Fairfax Financial Holdings and Emirates NBD were below the reserve price decided by the inter-ministerial group on disinvestment headed by secretaries in the Finance Ministry.

The government had then put the strategic sale process on hold.

The strategic sale process restarted this financial year, and the government, earlier this month, invited revised financial bids from the two suitors.

Sources said the financial bids were submitted on Monday, and the bids are yet to be opened.

Currently, the government and state-owned LIC together hold a 94.71 per cent stake in IDBI Bank. The government owns 45.48 per cent, and LIC holds 49.24 per cent in the lender. Of this, the government and LIC are looking to sell 60.72 per cent in the bank.

In October 2022, the government and Life Insurance Corporation of India (LIC) invited an Expression of Interest (EoI) to sell 60.72 per cent stake in IDBI Bank. This includes Centre and LIC paring 30.48 and 30.24 per cent stake, respectively.

Shares of IDBI Bank jumped 3.69 per cent to Rs 87.20 in afternoon trade on BSE.

Stock Market Snapshot

IDBI Bank share price traded firmly higher on Monday, although it gave up part of its early gains as the session progressed.

The stock was trading at ₹86.46, up ₹2.39 or 2.84%, as of 2:57 PM IST on July 14. After opening at ₹85, the stock climbed to ₹88.49 before easing from the day’s peak. It also touched a low of ₹84.64 during the session.

Despite the pullback from its high, the stock remained comfortably in positive territory, reflecting sustained buying interest through most of the trading day.