India Receives Revised Bids for IDBI Bank Stake Sale from Fairfax and Emirates NBD

The Indian government has received revised financial bids from Canada's Fairfax Financial and Dubai-based Emirates NBD for the proposed sale of its stake in IDBI Bank, marking another step forward in the long-running disinvestment process.

According to government sources, the evaluation of the revised offers is currently underway, with the transaction expected to move closer to completion within the next month.

The IDBI Bank logo is displayed on the exterior of the bank's headquarters in Mumbai, India.

Government Reviews Revised Offers

Officials said a high-level panel of senior bureaucrats met on Monday to assess the updated bids submitted by the two interested investors.

The sale involves a combined 60.7% stake in IDBI Bank held by the Government of India and Life Insurance Corporation of India (LIC). The Centre currently owns 45.48%, while LIC holds 49.24% in the lender.

Authorities are now reviewing the revised proposals before taking the next steps in the disinvestment process.

Sale Process Restarted After Earlier Bids Fell Short

The government revived the stake sale process after earlier bids received in March reportedly did not meet its valuation expectations.

Officials had previously paused the transaction due to offers falling below the government's minimum price benchmark. The revised bidding round was initiated to secure improved financial proposals from interested buyers.

Fairfax and Emirates NBD Remain in the Race

Fairfax Financial and Emirates NBD are currently among the leading contenders for the acquisition.

While media reports have indicated that Fairfax is emerging as a strong bidder, government authorities have not officially announced a preferred buyer. Neither the Finance Ministry, IDBI Bank, LIC, nor the two bidders have issued public comments on the revised submissions.

IDBI Bank Shares Rise

Following reports of the revised bids, IDBI Bank shares gained more than 3% during Tuesday's trading session, reflecting investor optimism over progress in the long-pending stake sale.

Long-Running Disinvestment Plan

The government and LIC first launched the IDBI Bank disinvestment process in 2022 as part of India's broader strategy to reduce public ownership in selected state-backed enterprises and attract private investment into the banking sector.

The outcome of the ongoing evaluation is expected to determine the next phase of one of India's most closely watched banking disinvestment transactions.