IDBI Bank says not heard from govt on finalising stake sale transaction
This story was originally published at 21:05 IST on 14 July 2026
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NEW DELHI – IDBI Bank has not received any communication from the government about finalising the transaction for strategic divestment of the bank, it informed the exchanges Tuesday. The bank's clarification came after some news reports earlier in the day that the government has received updated financial bids for strategic disinvestment of IDBI Bank, with Fairfax Financial Holdings Ltd. emerging as a frontrunner.
"It is hereby clarified that the proposed Strategic Disinvestment of IDBI Bank Limited is a confidential process being undertaken by the Government of India (GOI) and, hence, IDBI Bank is not in a position to either confirm or deny the referenced news report," the lender said. The government aims to sell its 30.48% stake and Life Insurance Corp. of India Ltd.'s 30.24% stake in the bank.
The government received financial bids for IDBI Bank in February, four years after inviting initial bids. It rejected those bids as they fell below the reserve price that the government had in mind. The reserve price is the minimum price sought to carry out a transaction involving the sale of shares. According to finance ministry officials, the government sought fresh bids earlier this month after lowering the reserve price.
After the proposed strategic sale, the shareholding of the government and LIC in IDBI Bank will fall to 15% and 19%, respectively.
Following the news reports, shares of IDBI Bank rose over 5% during the day before closing at INR 86.54 on the National Stock Exchange, up 2.9% from Monday. "The Bank is not aware of any undisclosed material information leading to the referenced news report and increase in the price of the shares," the lender said. End
Reported by Priyasmita Dutta
Edited by Rajeev Pai
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