IDBI Bank sale canceled as bids were below reserve price
IDBI Bank's stock dropped 16% in trading that day, sinking to ₹77.56, after reports that the government may call off the sale.
The reason? Both bids for the more than 60% stake (one from Fairfax and one from Emirates NBD) came in below the minimum price the government wanted.
IDBI Bank's privatization put on hold
This move puts a pause on IDBI Bank's long-awaited privatization, which was supposed to bring in new tech and management without relying on government or LIC support.
It also could affect India's disinvestment plans, with fresh bids now looking uncertain thanks to global tensions.
Sale process has been dragging since October 2022
The sale process has been dragging since October 2022, but only two bidders stepped up by February 6—and neither met the reserve price.
With market jitters and geopolitical worries in play, it might be a while before we see another attempt at selling IDBI Bank.