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Kotak Mahindra Bank is also involved in the race to buy controlling stake in IDBI Bank. Kotak Mahindra Bank is considering bidding in a combination of cash and shares. Applications for bidding can be made till the end of this month.
New Delhi. Toronto-based Fairfax Financial is at the forefront of the race to buy IDBI Bank. According to a report in Economic Times, Fairfax can make an all cash offer to buy the controlling stake of the bank from the Central Government and Life Insurance Corporation of India (LIC). Government of India and LIC have 60.72 percent stake in IDBI Bank. Fairfax competes with Kotak Mahindra Bank. Both of them were shortlisted two years ago to participate in the bidding process of IDBI Bank.
Fairfax Financial was founded by Prem Vatsa, a Canadian citizen of Indian origin. According to the current market price, the value of stake of Government of India and LIC in IDBI Bank is approximately 7 billion dollars (63 thousand crore rupees). Currently the market capitalization of IDBI Bank is ₹1.02 lakh crore. So far in the year 2025, the bank’s shares have increased by about 25 percent.
Kotak Mahindra is also in the race
Kotak Mahindra Bank is also involved in the race to buy controlling stake in IDBI Bank. Kotak Mahindra Bank is considering bidding in a combination of cash and shares. Applications for bidding can be made till the end of this month. But, this deadline can be extended further also. Emirates NBD had also earlier filed an expression of interest to acquire stake in IDBI Bank. But after recently signing an agreement to buy controlling stake in RBL Bank, Emirates NBD may withdraw from the bidding process. Fairfax Financial, Kotak Mahindra Bank and Emirates NBD declined to comment on the matter.
The value of shares increased 3 times in three years
The government had expressed its desire to sell its stake in IDBI three years ago. Since then, the value of IDBI Bank shares has increased three times. These shares closed at ₹ 95 per share on the National Stock Exchange on Thursday, taking the market capitalization of the bank to ₹ 1 lakh crore. Both Fairfax Financial and Kotak Mahindra Bank have been scrutinized by the Reserve Bank of India (RBI) and have found them to meet the criteria of ‘fit and proper’. This is a necessary condition for submission of financial bid. Fairfax Financial holds a controlling stake in CSB Bank.
