Government Approves Strategic Restructuring of IDBI Bank Ltd.

The Cabinet Committee on Economic Affairs (CCEA) approved the strategic restructuring and sale of an aggregate 60.72% equity stake in IDBI Bank Ltd. to M/s 10955230 Canada Inc. (parent entity M/s Fairfax Financial Holdings Ltd.) for a purchase consideration of Rs. 52,878.0806181 Crores. The transaction involves selling 30.48% of the Government of India's share and 30.24% of LIC's share, leaving residual shareholdings of 15% and 19% respectively. Implemented through a competitive bidding process managed by institutional mechanisms like the Inter-Ministerial Group and Core Group of Secretaries on Disinvestment, the winning best offer bid of Rs. 81 per share exceeded the benchmark fair valuation price of Rs. 75.99 per share. Upon completion, this will mark the largest Foreign Direct Investment in India's financial sector.