Cabinet selects Fairfax for proposed IDBI Bank stake sale

India’s Cabinet Committee on Economic Affairs has selected Fairfax Financial Holdings as the strategic buyer for a proposed 60.72% stake in IDBI Bank, in a transaction valued at about ₹52,878 crore. The decision advances a sale process begun in 2022, but does not transfer ownership or complete the deal. The stake consists of 30.48% held by the Indian government and 30.24% held by Life Insurance Corporation of India (LIC). If the transaction closes, the government would retain 15% of the bank and LIC 19%, leaving them with a combined 34% holding. The approved price is ₹81 per share. The Cabinet’s selection is subject to regulatory approvals and signed transaction agreements. Fairfax said no binding definitive agreements had been signed for the purchase or related proposed contributions, and that completion on the proposed terms was not assured. Fairfax chairman and chief executive Prem Watsa said the company expects closing in the first quarter of 2027, subject to approvals from Indian financial regulators. The proposed plan includes Fairfax transferring interests in Go Digit’s life and general insurance businesses and IIFL Capital Services to IDBI Bank. Those contributions...