IDBI Bank Stake Sale: Efforts to privatize IDBI Bank have been going on for a long time. Now a media report has revealed that Kotak Mahindra Bank is also in the race to buy a large stake in it. According to media reports, apart from Oaktree Capital and Fairfax, now Kotak Mahindra Bank has also shown great interest in it. However, also note that Kotak Mahindra Bank has not yet officially confirmed nor denied the same. Even Moneycontrol cannot confirm its authenticity.
What are the problems in privatization of IDBI Bank?
The most important concern regarding the privatization of IDBI Bank is that its huge market cap is the biggest breaker in this path. With a market cap of more than ₹1 lakh crore, it would be difficult for an investor to purchase a 60% stake. However, according to media reports, Kotak Mahindra Bank may consider a part-equity, part-cash merger deal with the advantage of equity currency.
What is the government’s plan regarding disinvestment?
The central government plans to finalize the privatization of IDBI Bank by the end of FY 2026. Currently, the government has 45.48% stake in it, while 49.24% stake is owned by LIC, the country’s largest life insurance company. The government has entrusted the Department of Investment and Public Asset Management (DIPAM) with the task of selling 61% stake in IDBI Bank. According to the report of news agency Reuters, DIPAM Secretary had said earlier this month that due diligence for the sale of stake in IDBI Bank has been completed and there is a plan to invite financial bids by December. Let us tell you that the plan to sell the government’s stake in IDBI Bank was first announced in the year 2022.
How is the situation of shares?
IDBI Bank shares were at ₹65.89 on January 13, 2025, which is a one-year record low for its shares. From this low level, it jumped 62.38% in just nine months to reach ₹ 106.99 on October 31, 2025, which is a one-year record high level for its shares. Talking about its shareholding pattern, according to the shareholding pattern of September 2025 quarter, the promoters’ stake in it is 94.71% of which LIC holds 49.24%. Public shareholders’ holding is 5.29% in which 21 mutual funds hold 0.05%, 18 banks hold 0.01%, 7 insurance companies hold 0.05% and 6,80,203 retail investors with investments up to ₹2 lakh hold 2.11%.
Disclaimer: The information provided here is being provided for information only. It is important to mention here that investing in the market is subject to market risks. As an investor, always consult an expert before investing money. Moneycontrol never advises anyone to invest money here.