Cabinet Approves IDBI Bank Stake Sale -

shares fell over 7% in early trade following the Union Cabinet’s approval of a 60.72% stake sale to Canada-based Fairfax Financial Holdings for Rs 52,878 crore. The Cabinet Committee on Economic Affairs (CCEA) cleared the strategic divestment involving a 30.48% stake held by the Central Government and a 30.24% holding by the Life Insurance Corporation of India (LIC). The approved transaction valuation of Rs 81 per share represents a discount to the bank’s previous market closing price, triggering immediate selling pressure from equity investors. Following the completion of the transfer, the Central Government will retain a 15% stake, while LIC will retain 19%, leaving a combined public holding of 34% in the restructured entity.