Fairfax Financial Holdings, the Toronto-headquartered financial services group led by Indian-born investor Prem Watsa, is set to acquire majority stake in IDBI Bank for ₹52,878.08 crore. The Union Cabinet on Wednesday approved the sale of a combined 60.72% stake in IDBI Bank, held by the Government of India and Life Insurance Corporation of India (LIC), to Fairfax’s subsidiary, 10955230 Canada Inc.
The transaction would transfer majority ownership and management control of the lender to the Canadian group, subject to regulatory and other requisite approvals.
Founded in 1985, Fairfax Financial operates primarily in property and casualty insurance, reinsurance and investment management. It has built a global business through acquisitions and a long-term, value-oriented investment strategy, with India emerging as an important market.
From Hyderabad to Canada’s financial sector
Born near Hyderabad in 1950, Watsa graduated in chemical engineering from the Indian Institute of Technology Madras in 1971. He subsequently moved to Canada to pursue an MBA at the University of Western Ontario before beginning his career in investment management at Confederation Life.
In 1984, Watsa co-founded Hamblin Watsa Investment Counsel, an investment management firm. A year later, he took control of a small Canadian insurance business that became the foundation of Fairfax Financial Holdings. He has served as the group’s chairman and chief executive since 1985.
Watsa is known for his value-investing approach and emphasis on long-term returns. His investment philosophy has often drawn comparisons with that of billionaire investor Warren Buffett, with Fairfax combining insurance underwriting with investments across businesses and asset classes.
India becomes a key investment market
Fairfax has expanded its India presence through investments spanning banking, infrastructure, financial services and other sectors. Its affiliate, Fairfax India Holdings Corporation, was established in 2014 to make long-term investments in Indian businesses.
In banking, Fairfax-backed investments include CSB Bank, formerly Catholic Syrian Bank. Fairfax India has a significant stake in the lender, which Watsa backed as part of its transformation. The proposed IDBI Bank acquisition would further expand the group’s exposure to India’s financial services sector.
Among its notable investments is Bengaluru’s Kempegowda International Airport, operated by Bangalore International Airport Ltd. Fairfax India holds a substantial stake in the airport operator. The group also has exposure to businesses including Quess Corp, Thomas Cook India, Go Digit General Insurance and IIFL Finance.
What the IDBI Bank deal means
Under the approved transaction, the government will sell its 30.48% stake in IDBI Bank, while LIC will divest 30.24%, taking the total stake being sold to 60.72%. The proposed consideration is ₹81 per share.
The Centre currently holds 45.48% of IDBI Bank, while LIC owns 49.24%. Following the proposed sale, the government is expected to retain around 15% and LIC approximately 19%, subject to the final transaction structure.
The strategic disinvestment process began with the issuance of an expression of interest in October 2022. Financial bids were submitted on February 6, 2026, with Fairfax Financial Holdings and Emirates NBD among the leading contenders during the process.
The transaction is subject to the applicable regulatory and procedural requirements. Its completion would mark a significant expansion of Fairfax’s banking interests in India.