IDBI Bank share price tumbles 14% as strategic sale likely scrapped; what we know so far Shares of IDBI Bank plummeted by 14% in early trading on March 16, 2026, hitting a low of ₹79.25 per share on the National Stock Exchange. The sharp decline followed reports that the strategic sale of the bank’s 60.72% stake, which had been under consideration since October 2022, may be scrapped. The financial bids submitted by potential buyers were reportedly below the reserve price set by the inter-ministerial group overseeing the disinvestment process. The government and Life Insurance Corporation of India (LIC) had jointly sought to sell 60.72% of IDBI Bank, with the government aiming to divest 30.48% and LIC 30.24%. An Expression of Interest (EoI) was floated in October 2022, and bids were received by February 6, 2026. However, the bids fell short of the reserve price, leading to the cancellation of the sale. Prem Watsa’s Fairfax Group and Emirates NBD were among the bidders, but their offers did not meet the required threshold. Currently, the government and LIC collectively hold 94.71% of IDBI Bank, with the government owning 45.48% and LIC holding 49.24%. The proposed sale would have reduced their combined stake to 33.99%. The disinvestment plan was part of broader efforts to reduce public sector stakes in banks and improve financial efficiency. The strategic sale process began in October 2022, with the government and LIC inviting bids for the 60.72% stake. In January 2023, the government announced it had received multiple preliminary bids, which were then evaluated for security clearance by the Ministry of Home Affairs and a "Fit and Proper" assessment by the Reserve Bank of India (RBI). Shortlisted bidders underwent due diligence before finalizing their offers.#reserve_bank_of_india #idbi_bank #life_insurance_corporation_of_india #fairfax_group #emirates_nbd
