IDBI Bank shares tumble 7.5% after Fairfax ₹53k-crore deal

Shares of IDBI Bank fell 7.5% on Thursday (October 15, 2026) after rallying sharply in the previous trade as Canada’s Fairfax Financial Holdings will acquire a 60.72% stake in the lender for about ₹53,000 crore ($5.5 billion).

The stock tanked 7.54% to ₹83.62 on the BSE. At the NSE, the stock dived 7.48% to ₹83.62.

Shares of IDBI Bank surged 9% before the announcement on Wednesday (October 14), adding ₹8,086 crore to its market valuation.

Canada’s Fairfax Financial Holdings will acquire a 60.72% stake in IDBI Bank for about ₹53,000 crore ($5.5 billion), in what would be the largest foreign investment in an Indian bank and a major milestone in the country’s long-delayed banking privatisation drive.

The Cabinet Committee on Economic Affairs approved Fairfax subsidiary M/s 10955230 Canada Inc as the strategic buyer for the government’s 30.48% stake (for about ₹26,620 crore) and state-run Life Insurance Corporation of India’s (LIC) 30.24% stake (for about ₹26,440 crore).

Canadian billionaire Prem Watsa-led Fairfax will pay ₹81 per share, higher than the benchmark fair value of ₹75.99 determined by two independent valuation agencies, an official statement said on Wednesday (October 14).

The deal — the largest in the banking space — marks a major milestone in a long-delayed effort to privatise IDBI Bank and reduce state ownership of commercial enterprises.

The sale process began in 2022 and faced a setback earlier this year when initial bids fell below the government’s reserve price.

The transaction still needs approval from the Reserve Bank of India (RBI), which will conduct a “fit and proper” assessment, as well as the Competition Commission of India (CCI) and other statutory authorities.