IDBI Bank shares fall after Cabinet clears Fairfax stake purchase
In short
IDBI Bank shares dropped after a strong rise in the previous session, following Cabinet approval of Fairfax’s plan to buy 60.72% of the lender. The stock had reached Rs 93.60 on Wednesday and the company’s market value went above Rs 1 lakh crore.
This matters because the Rs 52,878 crore deal is a big step toward privatising IDBI Bank. The report does not say when the transaction will close.
What the reporting says
IDBI Bank shares fell after investors booked profits following the Cabinet’s approval of Fairfax’s purchase of a 60.72% stake in the lender. The reporting says the stock had jumped nearly 13% in the prior session, touched Rs 93.60 on Wednesday and pushed market capitalisation above Rs 1 lakh crore. The deal is valued at Rs 52,878 crore, with Fairfax offering Rs 81 per share against a fair value of Rs 75.99.
Why it matters
IDBI Bank shares fell after investors took profits following Cabinet approval of Fairfax’s acquisition of a 60.72% stake. The reporting says the stock had surged nearly 13% in the previous session, hit Rs 93.60, and lifted market capitalisation above Rs 1 lakh crore. The Rs 52,878 crore transaction and Rs 81 per-share bid mark a major privatisation step, but the completion timeline is not stated.