IDBI Bank shares drop after government announces sale to Fairfax
Business
IDBI Bank's shares fell as much as 6.05% to ₹84.97 on Thursday after the government announced it is selling a majority stake to Canada's Fairfax Financial Holdings.
The deal is set at ₹81 per share, quite a bit lower than yesterday's closing price of ₹90.44, which left investors feeling let down.
Govt, LIC sell 60.72% of IDBI
The government and LIC are together selling 60.72% of IDBI Bank, but will keep a combined 34% stake after the sale.
This move is part of a long-awaited plan first floated in 2022, but market participants were reportedly expecting the sale price to be in the ₹100-110 per share range.
With that not happening, investors are worried about the bank's value, especially since IDBI stock is already down 13.4% this year and was trading at ₹84.97 today.