IDBI Bank Sale: Finance Ministry Defends ₹81 Per Share Fairfax Bid

The Ministry of Finance said on Thursday, 29 October 2026, that the bidding process for the strategic sale of IDBI Bank raised the price the government received by ₹3,917 crore, and that the reserve price was “neither decreased nor increased”. The ministry was responding to questions over the valuation of the 60.72% stake that the Cabinet Committee on Economic Affairs cleared for sale to Fairfax Financial Holdings’ Canadian arm on 14 October, as reported by Business Standard and UNI.

A Bidding Round Run by a Secretaries’ Panel

The ministry said the Core Group of Secretaries on Disinvestment had special powers to decide the final round and settle procedural questions. The first round was run by the Department of Investment and Public Asset Management (DIPAM) in 2025-26. Two independent advisers valued the bank using separate methods, according to the ministry.

It also explained one condition in the deal: the valuation included an indemnity for disputed tax demands. The ministry put the possible liability at ₹627 crore and called it a low-probability event that would not cost the government money.

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₹52,878 Crore for 60.72%

According to Business Today, the winning bid is ₹81 a share, against a benchmark fair value of ₹75.99, the average of the two independent valuations. The government is selling 30.48% and LIC 30.24%. After the sale the government will hold 15% and LIC 19%, and the government’s remaining stake is to be sold in the open market later.

Earlier this month the ministry said there was no legal bar on cutting the government’s stake. IPB News reported that in No Legal Bar on Cutting Stake in IDBI Bank, Finance Ministry Says. Opposition leader Rahul Gandhi has questioned the sale, UNI reported, and Finance Minister Nirmala Sitharaman has rebutted him.

RBI Check Still Pending

The deal is not complete. The buyer must still go through the Reserve Bank of India’s fit-and-proper assessment and submit a compliance roadmap. No completion date has been announced.

More business stories are in the Economy section.

Source: Based on reporting by Business Standard, UNI and Business Today.

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