Canadian insurance and investment holding company Fairfax Financial Holdings has been selected as the strategic buyer for a 60.72% stake in IDBI Bank, an Indian commercial bank. The move includes plans to combine the lender with Fairfax's insurance and investment banking businesses.
In a press release on 14 October, Fairfax said its wholly owned subsidiary would acquire the stake at INR81 per share for approximately INR528.78bn ($5.6bn). The proposed price represents a 23% premium to the bank’s book value as of 30 June 2026.
Fairfax also plans to contribute its interests in Go Digit Life Insurance and Go Digit General Insurance, alongside Fairfax India Holdings’ interest in IIFL Capital Services, to IDBI Bank.
The proposed combination would enable the bank to offer banking, property and casualty insurance, investment banking and wealth management services. Fairfax said the move aims to position IDBI Bank as a leading global Indian bank.
The transactions remain subject to regulatory and other approvals, including those from the Reserve Bank of India, the Securities and Exchange Board of India and the Insurance Regulatory and Development Authority of India. No binding definitive agreements have been signed, and completion is not guaranteed.
Fairfax expects IDBI Bank’s current managing director and chief executive officer, Rakesh Sharma, to continue leading the combined company, subject to the necessary approvals.