Shares of IDBI Bank Ltd. experienced a significant rally, jumping 13% in Wednesday's trade on October 14, 2026. This surge followed the Indian Cabinet's approval of Fairfax Financial Holdings' proposal to acquire a majority stake in the lender for a total of Rs 52,878 crore, as reported by Bloomberg, citing Finance Minister Nirmala Sitharaman.
Fairfax, the Canadian financial holding company led by investor Prem Watsa, will acquire a 60.72% stake in IDBI Bank. The transaction involves the sale of a 30.48% stake held by the Government of India and a 30.24% stake held by the Life Insurance Corporation of India (LIC). The government will retain a 15% stake, and LIC will hold 19%, together maintaining a 34% share in the restructured entity.
Details of the Acquisition and Open Offer
Under the terms of the agreement, Fairfax will pay Rs 81 per share for its stake in IDBI Bank. Following the initial acquisition, Fairfax is also mandated to make an open offer for additional IDBI Bank shares, adhering to regulatory requirements.
CSB Bank Shares Also Rise Amid Merger Directive
In related news, CSB Bank Ltd. shares also saw a notable gain of 6% on the same day. This boost comes as Fairfax has been instructed to merge CSB Bank with IDBI Bank within a two-year timeframe. This directive is part of the broader strategic restructuring envisioned by the Cabinet's approval of the IDBI Bank stake sale, aiming to consolidate and strengthen the banking entities under Fairfax's control.