Related StoriesStocks to watch today: LIC, Reliance, IDBI Bank, NLC India, Dr Reddy’s Lab, Morepen LabSitharaman hits back at Akhilesh Yadav over IDBI Bank stake saleReview Govt’s decision to sell majority stake in IDBI Bank: Employees’ unionFairfax faces CSB conundrum after winning IDBI Bank bid; Merger emerges as likely routeCCEA approves strategic restructuring of IDBI Bank, govt & LIC to get over ₹52,000 croreIDBI exit brings ₹26,337 crore to LIC, but limited upside for shareholdersImportant StoriesSmartphone shipments crash 22% in worst quarter ever: IDCCCEA approves strategic restructuring of IDBI Bank, govt & LIC to get over ₹52,000 croreIDBI Bank stake sale to push MCR receipts beyond ₹88,000 crore, providing fiscal reliefIndia plans BS-VII emission norms for new cars and SUVs from April 2029Aviation regulator DGCA bans use of particular power bank on flightsFollow UsFOLLOW US ON WHATSAPPHomeGO BACK TO HOME THIS AD SUPPORTS OUR JOURNALISM. SUBSCRIBE FOR MINIMAL ADS. THIS AD SUPPORTS OUR JOURNALISM. SUBSCRIBE FOR MINIMAL ADS. IDBI Bank shares tumble 7.5% after ₹53,000-cr Fairfax deal Shares of IDBI Bank surged 9 per cent before the announcement on Wednesday, adding Rs 8,086 crore to its market valuation. By PTI Updated - October 15, 2026 at 11:01 AM.×ShareWhatsAppXFacebookLinkedInMessengerRedditMailhttps://www.thehindubusinessline.com/money-and-banking/idbi-bank-shares-tumble-75-after-53000-cr-fairfax-deal/article71586736.eceCopy Canada’s Fairfax Financial Holdings will acquire a 60.72 per cent stake in IDBI Bank for about Rs 53,000 crore (USD 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. | Photo Credit: REUTERS/NIHARIKA KULKARNI

Shares of IDBI Bank fell 7.5 per cent on Thursday after rallying sharply in the previous trade as Canada's Fairfax Financial Holdings will acquire a 60.72 per cent stake in the lender for about Rs 53,000 crore (USD 5.5 billion).

The stock tanked 7.54 per cent to Rs 83.62 on the BSE. At the NSE, the stock dived 7.48 per cent to Rs 83.62.

Shares of IDBI Bank surged 9 per cent before the announcement on Wednesday, adding Rs 8,086 crore to its market valuation.

IDBI Bank stake sale to push MCR receipts beyond ₹88,000 crore, providing fiscal relief

Canada's Fairfax Financial Holdings will acquire a 60.72 per cent stake in IDBI Bank for about Rs 53,000 crore (USD 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 per cent stake (for about Rs 26,620 crore) and state-run Life Insurance Corporation of India's (LIC) 30.24 per cent stake (for about Rs 26,440 crore).

From 31% bad loans to a sale-ready bank: How IDBI got here

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

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.

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