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. This stake comprises 30.48% held by the Government of India and 30.24% held by the Life Insurance Corporation (LIC). The transaction was executed through a competitive bidding process managed by the Inter-Ministerial Group, Core Group of Secretaries on Disinvestment, and the Alternative Mechanism. Fair valuation was determined using independent methodologies, resulting in a winning bid of Rs.81 per share. Post-transaction, the Government of India and LIC will retain residual shareholdings of 15% and 19% respectively.