The Government of India has declared a wholly-owned subsidiary of Fairfax Financial Holdings the "Strategic Buyer" for a 60.72% equity stake in IDBI Bank under its proposed strategic disinvestment of the lender, Fairfax and Fairfax India Holdings Corporation said in a joint announcement.
The bid values the stake at INR 81 per share, or about INR 528.78 billion (approximately US$5.6 billion). That represents a premium of about 23% to IDBI Bank's book value as of June 30, 2026, measured under Indian Accounting Standards, according to Fairfax.
Fairfax proposes to contribute all of its interests in Go Digit Life Insurance and Go Digit General Insurance, together with Fairfax India's interest in IIFL Capital Services, to IDBI Bank. It expects to pay for the purchase through cash on hand, existing credit sources and potential asset sales.
The contributions need Reserve Bank of India approval, among other approvals. Both are also subject to review and approval by the Securities and Exchange Board of India, and the Digit contribution needs approval from the Insurance Regulatory and Development Authority of India.
Fairfax expects Rakesh Sharma, IDBI Bank's current managing director and chief executive, to keep leading the combined company. It plans to include C. VR. Rajendran, former chief executive of CSB Bank, and N. S. Kannan, who would act as chairman, in the leadership group, subject to Reserve Bank of India approval.
Fairfax said the declaration is not the final stage of the government's sale process. No binding definitive agreements have been signed, and there is no assurance the transactions will be completed on the proposed terms or at all. "We are very excited to be selected by the Government of India to be the purchaser of the Government’s interest in IDBI Bank," said Prem Watsa, Chairman and Chief Executive Officer of Fairfax Financial Holdings. The company will hold a conference call on the proposed transactions at 8:30 a.m. Eastern time on Thursday 15 October.