IDBI Bank Tanks 13% After Report Says Govt May Scrap Majority Stake Sale Over Low Bids

Last Updated:March 16, 2026, 10:18 IST

Shares of IDBI Bank tumbled in early trade on Monday after reports suggested that the government may scrap the ongoing strategic stake sale

IDBI Bank Shares

Shares of IDBI Bank tumbled sharply in early trade on Monday after reports suggested that the government may scrap the ongoing strategic stake sale of the lender due to bids falling below its minimum price expectations. The stock fell as much as 13.55 percent to Rs 79.69 in morning deals, reacting to reports over the weekend that the government could halt the long-running privatisation process.

According to reports by Bloomberg and Reuters, the government is likely to reject the bids received for selling its majority stake in IDBI Bank as they did not meet the reserve price set for the transaction. If confirmed, the move would effectively bring the current disinvestment process to a halt.

The government and Life Insurance Corporation of India (LIC) had initiated the strategic sale in 2022, with plans to divest a combined 60.7 percent stake in the lender.

At present, the government holds a 45.5 percent stake in IDBI Bank, of which it intends to sell 30.5 percent, while LIC owns 49.2 percent and plans to offload 30.2 percent. The proposed stake sale was expected to fetch around Rs 66,000 crore, according to earlier estimates.

Previous reports indicated that Canada-based Fairfax Financial Holdings and Dubai’s Emirates NBD were among the potential bidders for the stake.

However, the government may consider reopening the sale process at a later stage when market conditions improve and stronger investor interest emerges, a government source told Reuters. The privatisation of IDBI Bank has been one of the government’s key initiatives aimed at reducing state ownership in the banking sector.

Despite the uncertainty around the stake sale, IDBI Bank has shown a significant turnaround in recent years after capital infusion and efforts to reduce non-performing assets. Over the past year, the stock has risen around 9.2 percent, outperforming the Nifty 50, which has gained about 3.4 percent during the same period.

Read More