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IDBI Bank Shares Plummet as Privatization Falters
17 Mar
Summary
- IDBI Bank stock dropped significantly due to failed stake-sale plans.
- Government decided to cancel the sale due to insufficient bids.
- Fairfax Financial and Emirates NBD were potential bidders.
IDBI Bank Ltd. witnessed a dramatic fall in its stock value on March 16, 2026, marking its steepest decline since at least June 2024. The shares dropped by as much as 15.34%, reaching an intraday low of ₹78.05 on the BSE, while the broader market remained relatively stable.
This significant stock depreciation is attributed to reports indicating the government's decision to abandon its plan to sell a majority stake in IDBI Bank. The primary reason cited for this cancellation is the lacklustre bidding process, with the offers falling short of the government's minimum price requirements.
Previously, financial entities such as Fairfax Financial Holdings Ltd. and Emirates NBD had expressed interest in the sale. The stake up for grabs, representing 61% of the bank, carries an estimated market value of $6.5 billion. The Narendra Modi-led administration has been pursuing the divestment of IDBI Bank, a Mumbai-based entity, as part of its broader strategy to reduce state ownership in the banking sector.
