Fairfax to acquire IDBI Bank stake in US$ 5.50 billion deal, biggest foreign investment in Indian bank
- IBEF
- July 16, 2026
Canada-based Fairfax Financial Holdings has been selected to acquire a 60.72% stake in IDBI Bank from the Government of India and Life Insurance Corporation of India (LIC) in a transaction valued at approximately Rs. 52,932.00 crore (US$ 5.50 billion). The deal is expected to become the largest foreign investment in an Indian bank, making it the largest proposed foreign investment in an Indian bank to date. Fairfax reportedly revised its offer to Rs. 81 per share, following which it emerged as the preferred bidder. The Government is expected to divest a 30.48% stake, while LIC will sell 30.24%, with the transaction remaining subject to statutory and regulatory approvals, including those from the Competition Commission of India (CCI) and the Reserve Bank of India (RBI).
The proposed acquisition is expected to strengthen foreign investor confidence in India’s financial sector while supporting the Government’s asset monetisation and banking sector reform agenda. Following the transaction, Fairfax will be required to make an open offer to public shareholders in accordance with market regulations. The investment also reflects growing international interest in India’s banking industry, supported by improving asset quality, stronger financial performance and expanding credit demand. Once completed, the transaction is expected to enhance IDBI Bank’s growth prospects through increased capital, global expertise and operational efficiencies, while reinforcing India's attractiveness as a destination for long-term strategic investments.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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