IDBI Bank Shares Soar as Fairfax and Kotak Mahindra Bank Lead the Acquisition Race

IDBI Bank Shares Surge on Acquisition News

IDBI Bank shares rose over 4% on Friday, December 12, after reports emerged that Fairfax Financial and Kotak Mahindra Bank are the top contenders to acquire a majority stake in the lender. The Government of India and the Life Insurance Corporation of India (LIC) are jointly selling a 60.72% stake in IDBI Bank, valued at around $7 billion.

Fairfax and Kotak Mahindra Bank: The Leading Bidders

Toronto-based Fairfax Financial, led by Indian-Canadian billionaire Prem Watsa, is considering an all-cash bid that matches IDBI Bank's current market price. The company has already received approval from the Reserve Bank of India (RBI) as a fit and proper participant in the sale. Meanwhile, Kotak Mahindra Bank is exploring a cash-and-stock proposal and has also obtained RBI clearance.

IDBI Bank Stake Sale: What You Need to Know

The Centre and LIC aim to offload 61% of IDBI Bank, with the government holding 30.48% and LIC holding 30.24%. This transaction is expected to be one of the largest contributors to the government's disinvestment and asset monetisation target of ₹47,000 crore for the financial year 2025-26.

• The government and LIC together control 94.71% of IDBI Bank, leaving 5.29% with the public.
• IDBI Bank shares have risen over 50% since their 52-week low in January 2025.
• The stock has delivered multibagger returns of 141% over a five-year period.

IDBI Bank Share Price Performance

IDBI Bank shares climbed 4.15% to touch ₹99.10 intraday on Friday, just 7% away from their 52-week high of ₹106.99 recorded in October 2025. Although the stock has declined over 1% in the past month, it is up 29% on a year-to-date basis and 18% over the past year.

Both Fairfax Financial and Kotak Mahindra Bank are expected to submit their financial offers by the end of December, marking a significant milestone in the IDBI Bank stake sale process.