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IDBI Bank Privatisation Reportedly Halted After Bids Miss Reserve Price

A valuation gap with the undisclosed reserve price has thrown the disinvestment timetable into doubt.

Overview

  • IDBI Bank shares sank as much as 15–17% on March 16 and are down about 28% over five sessions through March 18, reflecting mounting uncertainty.
  • Bloomberg and Reuters reported the government moved to scrap or pause the strategic sale after financial bids fell short of the reserve price.
  • IDBI Bank told stock exchanges it has not received any formal government communication about scrapping the process and said the exercise is confidential.
  • Fairfax Financial and Emirates NBD were reported as the shortlisted bidders that submitted financial offers, while Kotak Mahindra did not enter final bids.
  • The proposed transaction involved a combined 60.72% stake from the Centre and LIC, and its stalling dents FY26 disinvestment receipts, with a Reuters source indicating the sale could be revisited when conditions improve.