The financial bids for the strategic disinvestment of IDBI Bank have been received from the shortlisted bidders, the Department of Investment and Public Asset Management (DIPAM) said on Friday, paving the way for the announcement of the winning bidder in the coming weeks.
Fairfax India Holdings, the promoter of CSB Bank, and Kotak Mahindra Bank are widely seen as the frontrunners in the race for the lender.
Emirates NBD, which was among the shortlisted bidders, is no longer considered a serious contender after it acquired a majority stake in private sector lender RBL Bank last year, analysts said.
Given the limited time left in the current financial year, proceeds from the IDBI Bank disinvestment are now expected to flow into the government of India and Life Insurance Corporation of India (LIC) in FY27. The Centre and LIC are jointly selling a 60.72% stake in the bank as part of the strategic sale.
“Financial bids have been received for the strategic disinvestment of IDBI Bank. They will be evaluated as per the prescribed procedure,” DIPAM secretary Arunish Chawla said in a post on X.
Valuation Puzzle
In line with market practices and existing guidelines, the reserve price for the transaction will be determined based on the business valuation conducted by the transaction adviser. The reserve price is fixed only after the receipt of sealed financial bids.
The proposed transaction involves the sale of the government’s 30.48% stake in IDBI Bank, currently valued at around Rs 35,000 crore at prevailing market prices. LIC holds the remaining stake being offered as part of the strategic sale.
Shares of IDBI Bank closed at Rs 106.92 on Friday, up 3.86% from the previous close on the BSE, tracking optimism around progress in the long-pending disinvestment process.
DIPAM had received multiple expressions of interest for IDBI Bank on January 7, 2023, of which four bidders were shortlisted after due diligence and vetting by the Reserve Bank of India.
Shifting Timelines
The strategic sale of IDBI Bank has faced repeated delays over the past few years due to a combination of factors, including changes in bidder interest and evolving market conditions.
A major development that altered the competitive landscape was Emirates NBD’s announcement in October 2025 that it would acquire up to a 60% stake in RBL Bank for about $3 billion (around `27,000 crore). The transaction, involving a preferential share issue and a mandatory open offer, is subject to regulatory approvals and represents the largest foreign investment in India’s private banking sector to date. Following this move, market participants no longer see Emirates NBD as an active bidder for IDBI Bank.