IDBI Bank stocks dropped over 7% in intraday trading on October 15, following the decision by the Union Cabinet to sell a controlling stake in the bank to Fairfax Financial Holdings for ₹52,878 crore, which amounts to roughly $5.56 billion. This came in the wake of an impressive rally on the previous day after the long-awaited privatisation of the lender by the government.
Shares dropped as much as 7.8% to intraday lows of ₹83.30, based on available market reports. IDBI Bank shares had ended at ₹90.44 on Wednesday after recording almost 9% gains. The drop was mainly because of booking of profits following the previous rally and the gap between the offer price by Fairfax and the prevailing share prices. This was a major step towards the disinvestment of the shares but it is still dependent on regulatory clearances.
IDBI Bank Share Price Today: Why Did Shares Fall 7%?
After the evaluation of the financial aspects of the deal, IDBI Bank shares were seen to face some trouble. This is because Fairfax’s bid for acquiring IDBI Bank comes in at approximately 10.4% less compared to the stock’s price on Wednesday, which was ₹90.44.
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The stock had risen before the official announcement due to the privatisation expectations. Following the approval by the Cabinet, there have been indications from certain investors who have seen profit booking from their investments.
According to Reuters, IDBI Bank shares were trading down 6.6% at ₹84.45 around 10:02 am IST on Thursday. Other market sources have reported more than 7% decline for the day.
IDBI Bank Stake Sale: Government and LIC to Sell 60.72% Stake
The approval for the strategic sale was made by the Cabinet Committee on Economic Affairs on October 14, 2026. In this regard, a wholly owned subsidiary of Fairfax Financial Holdings, 10955230 Canada Inc., has been chosen as the strategic purchaser for the 60.72% share in IDBI Bank.
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