Overview
- Authorities are considering an offer-for-sale to raise IDBI Bank’s public shareholding after scrapping the planned 60.72% strategic sale, according to PTI reports citing sources.
- Financial bids from Emirates NBD and Prem Vatsa–promoted Fairfax India were received in February but reportedly came in below the government’s reserve price.
- Raising free float by about 10–15% is being discussed to improve price discovery, with the option to revisit a strategic sale after one or more OFS tranches, sources said.
- Current ownership stands at LIC 49.24% and Government of India 45.48%, leaving a public float of just 5.29% that has constrained valuation.
- IDBI Bank shares fell more than 4.5% intraday as investors digested the rethink, while experts and union voices pointed to high reserve pricing, complex processes and policy sensitivities limiting privatisation progress.