Canada’s Fairfax Financial Holdings will take control of IDBI Bank as the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, cleared its ₹52,877 crore bid for a 60.72% stake. It is the biggest strategic disinvestment since Air India was sold.
The shares on offer belong to two holders. The Centre owns 30.48% and Life Insurance Corporation of India (LIC) owns 30.24%. Both will remain as minority investors, with the government at 15% and LIC at 19%, a joint 34%. Management control of the lender will pass to Fairfax.
Union Minister Ashwini Vaishnaw said the deal, once completed, will be the single biggest foreign direct investment in India’s financial sector.