Centre approves Fairfax Financial’s ₹52,878 crore bid for 60.72% stake in IDBI Bank
IDBI Bank left its position unchanged.
· Business Today Mkts, NDTV Profit, LiveMint Companies
The transaction involves the sale of a 30.48% stake held by the Government of India and a 30.24% stake held by Life Insurance Corporation of India (LIC). Following the transaction, the government will retain a 15% stake in the bank, while LIC will continue to hold 19%.
The analysis
IDBI Bank reported ₹52,878 crore, with movement of 15%, 19% and 60.72% attached to those lines. Those are the figures as filed — what moves the price is how they sit against what the market already expected, not their absolute size.
Against that, the stock is +9.0% on the day at ₹90.39, and has returned +4.5% over three months. It sits 22% below its 52-week high. The banks sector has moved -2.2% over the same period, so IDBI Bank is running 6.7 points ahead of its peers.
For IDBI Bank, the question is how much of this is already reflected in the price and how much re-rates the banks peer set alongside it.
Market context
- The company directly in focus is IDBI.
- Sector exposure: Banks, Insurance, Financial Services.
In this story
Related coverage
India homecoming: The Hyderabad-born man behind Fairfax, the Canadian powerhouse that has bought IDBI
IDBI Bank shares rally 13%, market value swells by Rs 11,460 crore amid muted market. What lies ahead?
Canara Bank Q2 results: Profit rises 8% to ₹5,175 cr, revenue at ₹40,931 cr
ICICI Prudential Life Insurance to focus on growing absolute VNB amid slump in FY24
Gujarat State Petronet falls sharply from day#39;s high as tariff cut triggers flurry of downgrades