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The planned strategic sale of IDBI Bank has faced further delays, with the timeline for completing the transaction depending on market conditions and the valuation offered by potential buyers. The sale will depend on market conditions.
The government and LIC together hold a 94.72% stake in IDBI Bank. The Centre owns 45.48% of the bank, while LIC holds 49.24%. Under the proposed disinvestment plan, the government intends to sell a 30.48% stake, while LIC plans to sell 30.24%. This would take the total stake offered for sale to 60.72%, along with the transfer of management control to the successful buyer.
Earlier also, the Government planned to sell its stake in IDBI Bank but the process was put on hold as Government did not receive bids as per expectation.
The share price of IDBI Bank Ltd is ₹83.11 (as of October 12, 2026). While the stock reached a 52-week high of ₹118.38, it has pulled back alongside broader market corrections and sector-wide profit-booking in banking stocks.
India’s stock market is going through a serious correction and a period of financial stress as of 12 October 2026. The Nifty 50 has fallen approximately 14% in 2026, according to recent market reports.
The market conditions and valuation alignment are key reasons the government and LIC have delayed finalizing the strategic sale.
Initial financial proposals came in lower than expected, falling short of the government’s internal reserve valuation. To avoid selling state-owned assets below intrinsic value during periods of stock price pullback, the Department of Investment and Public Asset Management (DIPAM) opted to wait for favorable market parameters before finalizing the deal.
Wider market corrections and volatility—fueled by global macroeconomic pressures and sector-wide profit booking in financial stocks— have prompted the Inter-Ministerial Group to avoid rushing the transaction during a weak price phase.
Although revised bids (including proposals from Prem Watsa’s Fairfax Financial) were received and evaluated in recent months, official timelines for completing the 60.72% stake sale and management transfer have now been extended into FY27.
