IDBI Bank Stake Sale Nears Finish Line; Kotak, Emirates, Fairfax to Submit Final Bids

The final phase of the IDBI Bank divestment process is reportedly expected to be completed in the current financial year (FY26), with selected bidders set to submit their financial bids this week. The list of suitors bidding for the 61% stake in the former infrastructure development bank includes Kotak Mahindra Bank, UAE-based Emirates NBD and Canadian billionaire Prem Watsa-led Fairfax India Holdings.

According to a Moneycontrol report on Friday, one bid has already been submitted for IDBI Bank, with additional bids expected to be filed before the weekend. The bids will be submitted to the Department of Investment and Public Asset Management (DIPAM) under the finance ministry.

Officials cited in the report said the Centre expects to raise around ₹33,000 crore through the transaction by selling its 30.48% stake in the bank, while Life Insurance Corporation of India (LIC) will divest 30.24%. Together, the Centre and LIC currently hold about a 90% stake in IDBI Bank.

Separately, The Economic Times reported that the reserve price for the sale will be finalised after the financial bids are received but before they are opened. The decision will be taken by a small group of government officials, it added. Sebi’s open-offer pricing framework may also be considered while determining the reserve price.

A government official told the newspaper that the price will be based on completed business and asset valuations. The Centre had appointed an independent asset valuer for IDBI Bank, with immovable assets such as land and buildings accounting for around 3% of the bank’s total assets.

End of Long Divestment Process

The proposed divestment by March 31, 2026, is expected to bring closure to the IDBI Bank sale process, which has been underway for nearly six years. The plan was first announced in February 2020 during the presentation of the FY21 Budget, while the request for proposal (RFP) was issued in October 2022.

The Reserve Bank of India has reportedly cleared four bidders under its ‘fit and proper’ criteria, Kotak Mahindra Bank, Fairfax India Holdings, Emirates NBD and Oaktree Capital. In January, it was reported that due diligence at IDBI Bank was nearing completion, and DIPAM has now invited final bids.

The transaction has faced delays due to multiple procedural requirements that were addressed over time. As part of the process, the Centre and LIC sought regulatory approvals to relinquish their promoter status in the bank. Additionally, Sebi was approached to grant IDBI Bank an exemption from minimum public shareholding norms, which require listed companies to maintain at least a 25% public float.

For the financial year 2026–27 (FY27), the Budget 2026 has targeted ₹80,000 crore from disinvestment and asset monetisation. In a post-budget interaction, DIPAM secretary Arunish Chawla told reporters, “Before the end of this financial year, we will be able to give further information in this matter.”