Fairfax Financial IDBI offer: Along with bank mergers, the government is moving toward privatizing public sector banks. The process of selling stake in IDBI Bank has been ongoing for a long time. It has now reached its final stages. If all goes well, IDBI Bank will soon be in private hands.
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IDBI Bank: Along with the merger of banks, the government is moving towards privatization of public sector banks. The process of selling stakes in IDBI Bank has been ongoing for a long time. Now, it has reached its final stage. If all goes well, IDBI Bank will soon be transferred to private hands. The government and LIC are planning to sell their stakes in IDBI Bank. Canadian company Fairfax Financial is leading the list of suitors. Kotak Mahindra has also submitted a bid to acquire the bank, but Fairfax Financial currently leads the race. According to the Economic Times, the deadline for submitting bids ends in December.
Public Sector Bank to be Sold
The Central Government and LIC are jointly planning to sell their 60.72% stake in IDBI Bank. Bids have been invited for this. The valuation of the government and LIC’s stakes is approximately $7 billion at current market prices, while the bank’s total valuation is ₹1.02 lakh crore. In the current financial year, the bank’s revenue was ₹34,000 crore, while its profit was ₹7,588 crore. The bank’s shares have risen by almost a quarter so far this year. By selling their stake, the government and LIC will earn $7 billion, or approximately ₹6,32,62,59,67,400. However, no official information has been released regarding this matter. The winner of the bid will be revealed only after the final outcome. What kind of life-saving medicine did these two Anil Ambani companies receive that allowed their shares to roar even in difficult times, and will they lead to a comeback?
Who is in the race to buy IDBI Bank?
In addition to Canadian company Fairfax, India’s Kotak Mahindra has also bid to acquire IDBI Bank. Both Fairfax Financial and Kotak Mahindra Bank were scrutinized by the Reserve Bank of India. The central bank shortlisted them after assessing their fitness and proper standards. Fairfax Financial is the financial company of Indian-born Canadian billionaire Prem Watsa. Fairfax is competing with Kotak Mahindra Bank for IDBI Bank. Both companies have been competing for the acquisition for the past two years.
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