Shares of IDBI Bank fell 10.56 per cent to close at Rs 81.12 on Tuesday, with investors focusing on the reported price at which Canada-based Fairfax Financial Holdings could acquire a controlling stake in the lender. The stock had closed at Rs 90.70 on Monday, while the reported Fairfax offer of around Rs 81 per share emerged as a key concern for investors. The sharp decline came even as the broader market also ended lower amid rising crude oil prices and geopolitical concerns. Analysts said there was no specific company-related development behind the fall, but noted that IDBI Bank has relatively low public float, with about 95 per cent of its shares held jointly by the Government of India and Life Insurance Corporation of India (LIC). The stock has also historically shown high volatility on low trading volumes and had gained over the previous four to five sessions. Meanwhile, stock exchanges have sought clarification from IDBI Bank regarding a media report that Fairfax could sell IIFL Finance to help fund its bid for the bank. The government and LIC are seeking to sell a combined 60.72 per cent stake in IDBI Bank along with management control, with the government offering 30.48 per cent and LIC 30.24 per cent. The potential Fairfax transaction has drawn investor attention as it could significantly expand the group’s presence in India’s banking and financial-services sector.
Fairfax Bid Weighs on IDBI Bank Shares, Stock Drops Over 10%
