{"id":312671,"date":"2026-10-16T10:23:54","date_gmt":"2026-10-16T04:53:54","guid":{"rendered":"https:\/\/univest.in\/blogs-2\/?p=312671"},"modified":"2026-10-16T10:23:54","modified_gmt":"2026-10-16T04:53:54","slug":"idbi-bank-shares-crashed-after-fairfax-deal-should-you-buy-this-to-reap-profits-later-will-they-rise-experts-views","status":"publish","type":"post","link":"https:\/\/univest.in\/blogs-2\/idbi-bank-shares-crashed-after-fairfax-deal-should-you-buy-this-to-reap-profits-later-will-they-rise-experts-views\/","title":{"rendered":"IDBI Bank Shares Crashed After Fairfax Deal; Should You Buy This to Reap Profits Later? Will They Rise? Experts&#8217; Views"},"content":{"rendered":"<p style=\"border-left:4px solid #1F4E79;background:#EBF3FB;padding:10px 16px;font-style:italic;\"><em>IDBI Bank shares fell as much as 7.45% to Rs 83.70 on 15 Oct 2026 after the Cabinet cleared the sale of 60.72% to a Fairfax backed buyer at Rs 81 a share (Rs 52,878 crore). The deal price is about 10% below the previous close. Approvals from the RBI, CCI and SEBI are pending and completion is expected by March 2027, per one analyst. The open offer details come from a single author and are unverified.<\/em><\/p>\n<div style=\"background:#F0F9FF;border-left:4px solid #2E7D32;border-radius:6px;padding:14px 18px;margin:18px 0;\">\n<p style=\"margin:0;color:#1F4E79;font-size:14px;\"><strong>Quick Answer<\/strong><\/p>\n<p style=\"margin:8px 0 0;\">IDBI Bank shares fell as much as 7.45% to Rs 83.70 on 15 October 2026 after the Cabinet approved the sale of a 60.72% stake to a Fairfax backed buyer at Rs 81 per share, a total of Rs 52,878 crore. The deal price is about 10% below the previous close of roughly Rs 90, but about 6.6% above an independent valuation of Rs 75.99 and about 15% above the Rs 70.38 close before the bid process, per the reports. Experts differ on whether the price is good value or fair: one author calls it good value for control of the bank, while others question the valuation and the quality of earnings. Buying IDBI Bank shares to reap profits later depends on Fairfax lifting returns and on a thin free float, and the approvals are still pending.<\/p>\n<\/p><\/div>\n<p>The government sells 30.48% and LIC sells 30.24%, taking the combined sale to 60.72%. After the deal the government keeps 15% and LIC keeps 19%. IDBI Bank shares were already down about 10% over one year and 19% in 2026 before this fall.<\/p>\n<p>This guide explains the deal terms, the valuation arguments, what experts say, the open offer and the risks, so you can judge the question in the headline. An earlier Univest article covers the deal basics, and this one focuses on the investor view. It is educational and not a recommendation.<\/p>\n<p style=\"margin-top:24px;\"><strong><a href=\"https:\/\/univest.in\/user\/log-in?utm_source=blogs&#038;utm_medium=idbi-bank-shares-crashed-after-fairfax-deal-should-you-buy-this-to-reap-profits-later-will-they-rise-experts-views\">Click Here &#8211; Get Free Investment Predictions<\/a><\/strong><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/univest.in\/blogs-2\/idbi-bank-shares-crashed-after-fairfax-deal-should-you-buy-this-to-reap-profits-later-will-they-rise-experts-views\/#Why_IDBI_Bank_Shares_Fell_After_the_Fairfax_Deal\" title=\"Why IDBI Bank Shares Fell After the Fairfax Deal\">Why IDBI Bank Shares Fell After the Fairfax Deal<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/univest.in\/blogs-2\/idbi-bank-shares-crashed-after-fairfax-deal-should-you-buy-this-to-reap-profits-later-will-they-rise-experts-views\/#IDBI_Bank_Shares_Valuation_Is_Rs_81_Good_Value_or_Fair\" title=\"IDBI Bank Shares Valuation: Is Rs 81 Good Value or Fair?\">IDBI Bank Shares Valuation: Is Rs 81 Good Value or Fair?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/univest.in\/blogs-2\/idbi-bank-shares-crashed-after-fairfax-deal-should-you-buy-this-to-reap-profits-later-will-they-rise-experts-views\/#What_Experts_Say_About_IDBI_Bank_Shares\" title=\"What Experts Say About IDBI Bank Shares\">What Experts Say About IDBI Bank Shares<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/univest.in\/blogs-2\/idbi-bank-shares-crashed-after-fairfax-deal-should-you-buy-this-to-reap-profits-later-will-they-rise-experts-views\/#Open_Offer_Free_Float_and_What_Minority_Holders_Face\" title=\"Open Offer, Free Float and What Minority Holders Face\">Open Offer, Free Float and What Minority Holders Face<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/univest.in\/blogs-2\/idbi-bank-shares-crashed-after-fairfax-deal-should-you-buy-this-to-reap-profits-later-will-they-rise-experts-views\/#Should_You_Buy_IDBI_Bank_Shares_to_Reap_Profits_Later\" title=\"Should You Buy IDBI Bank Shares to Reap Profits Later?\">Should You Buy IDBI Bank Shares to Reap Profits Later?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/univest.in\/blogs-2\/idbi-bank-shares-crashed-after-fairfax-deal-should-you-buy-this-to-reap-profits-later-will-they-rise-experts-views\/#What_to_Watch_Next\" title=\"What to Watch Next\">What to Watch Next<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/univest.in\/blogs-2\/idbi-bank-shares-crashed-after-fairfax-deal-should-you-buy-this-to-reap-profits-later-will-they-rise-experts-views\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/univest.in\/blogs-2\/idbi-bank-shares-crashed-after-fairfax-deal-should-you-buy-this-to-reap-profits-later-will-they-rise-experts-views\/#Frequently_Asked_Questions\" title=\"Frequently Asked Questions\">Frequently Asked Questions<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/univest.in\/blogs-2\/idbi-bank-shares-crashed-after-fairfax-deal-should-you-buy-this-to-reap-profits-later-will-they-rise-experts-views\/#Why_did_IDBI_Bank_shares_fall_after_the_Fairfax_deal\" title=\"Why did IDBI Bank shares fall after the Fairfax deal?\">Why did IDBI Bank shares fall after the Fairfax deal?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/univest.in\/blogs-2\/idbi-bank-shares-crashed-after-fairfax-deal-should-you-buy-this-to-reap-profits-later-will-they-rise-experts-views\/#What_is_the_Fairfax_deal_for_IDBI_Bank_shares\" title=\"What is the Fairfax deal for IDBI Bank shares?\">What is the Fairfax deal for IDBI Bank shares?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/univest.in\/blogs-2\/idbi-bank-shares-crashed-after-fairfax-deal-should-you-buy-this-to-reap-profits-later-will-they-rise-experts-views\/#Is_Rs_81_a_fair_price_for_IDBI_Bank_shares\" title=\"Is Rs 81 a fair price for IDBI Bank shares?\">Is Rs 81 a fair price for IDBI Bank shares?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/univest.in\/blogs-2\/idbi-bank-shares-crashed-after-fairfax-deal-should-you-buy-this-to-reap-profits-later-will-they-rise-experts-views\/#Will_there_be_an_open_offer_for_IDBI_Bank_shares\" title=\"Will there be an open offer for IDBI Bank shares?\">Will there be an open offer for IDBI Bank shares?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/univest.in\/blogs-2\/idbi-bank-shares-crashed-after-fairfax-deal-should-you-buy-this-to-reap-profits-later-will-they-rise-experts-views\/#Should_I_buy_IDBI_Bank_shares_to_reap_profits_later\" title=\"Should I buy IDBI Bank shares to reap profits later?\">Should I buy IDBI Bank shares to reap profits later?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/univest.in\/blogs-2\/idbi-bank-shares-crashed-after-fairfax-deal-should-you-buy-this-to-reap-profits-later-will-they-rise-experts-views\/#What_approvals_are_pending_for_IDBI_Bank_shares\" title=\"What approvals are pending for IDBI Bank shares?\">What approvals are pending for IDBI Bank shares?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/univest.in\/blogs-2\/idbi-bank-shares-crashed-after-fairfax-deal-should-you-buy-this-to-reap-profits-later-will-they-rise-experts-views\/#When_will_the_deal_be_completed\" title=\"When will the deal be completed?\">When will the deal be completed?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/univest.in\/blogs-2\/idbi-bank-shares-crashed-after-fairfax-deal-should-you-buy-this-to-reap-profits-later-will-they-rise-experts-views\/#Is_this_article_investment_advice\" title=\"Is this article investment advice?\">Is this article investment advice?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Why_IDBI_Bank_Shares_Fell_After_the_Fairfax_Deal\"><\/span><strong>Why IDBI Bank Shares Fell After the Fairfax Deal<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table style=\"border-collapse:collapse;width:100%;\">\n<tr>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Item<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Detail<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Source note<\/th>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Stake sold<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">60.72%: government 30.48%, LIC 30.24%<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Free Press Journal, Equentis<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Deal value<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 52,878 crore, Cabinet cleared<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Reported<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Price per share<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 81<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Equentis, Business Standard<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Previous close<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About Rs 90 (Rs 89.85 to Rs 90.40 depending on source)<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Sources differ<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Low on 15 Oct<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 83.70, down 7.45%<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Free Press Journal<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Market value lost<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About Rs 6,500 crore<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Equentis<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Pending<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">RBI fit and proper check, CCI, SEBI, definitive agreements<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Fairfax statement of 14 Oct<\/td>\n<\/tr>\n<\/table>\n<p>The fall came after a sharp rally earlier in the week, so part of the drop is profit booking. Equentis also cites disappointment that the deal price of Rs 81 is below the market price. These are reported explanations and not confirmed causes.<\/p>\n<p><strong>Risk:<\/strong> Cabinet approval did not complete the deal, because the definitive agreements had not been signed on 14 October.<\/p>\n<p style=\"margin-top:24px;\"><strong><a href=\"https:\/\/univest.in\/screeners\">Screen bank stocks on the Univest Screener<\/a><\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"IDBI_Bank_Shares_Valuation_Is_Rs_81_Good_Value_or_Fair\"><\/span><strong>IDBI Bank Shares Valuation: Is Rs 81 Good Value or Fair?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table style=\"border-collapse:collapse;width:100%;\">\n<tr>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Measure<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Figure<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Who says<\/th>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Independent valuation (average of two)<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 75.99<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Business Standard<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Earlier bid rejected<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 75, against a reserve price of Rs 94.42<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Business Standard<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Price to book value<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About 1.2 times (Biyani) or 1.46 times on a book value of Rs 55.41 (The Next Read)<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Estimates differ<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Price to earnings<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About 9 times (9.2 times on EPS of Rs 8.85)<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Both<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Premium to undisturbed price<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About 15% over Rs 70.38 on 18 May<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Biyani; The Next Read<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Discount to last close<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About 10%<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Reported<\/td>\n<\/tr>\n<\/table>\n<p>My check: Rs 81 divided by Rs 55.41 is about 1.46 and Rs 81 divided by Rs 8.85 is about 9.2, so The Next Read figures match its inputs. The difference with Biyani&#8217;s 1.2 times probably comes from the book value used, but the article does not say.<\/p>\n<p>The government argues the price of IDBI Bank shares was inflated by takeover hopes and thin trading, since the government and LIC held close to 95% before the sale. The independent valuation used accounts to 31 March 2026.<\/p>\n<p><strong>Risk:<\/strong> Valuation methods give different answers, so no single multiple settles the question.<\/p>\n<p style=\"margin-top:24px;\"><em>Download the <a href=\"http:\/\/apps.apple.com\/in\/app\/univest-stocks-investment\/id6443753518\" rel=\"nofollow noopener\" target=\"_blank\">Univest iOS App<\/a> or <a href=\"http:\/\/play.google.com\/store\/apps\/details?id=com.univest.capp&#038;hl=en_IN\" rel=\"nofollow noopener\" target=\"_blank\">Univest Android App<\/a> to track IDBI Bank and set price alerts.<\/em><\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_Experts_Say_About_IDBI_Bank_Shares\"><\/span><strong>What Experts Say About IDBI Bank Shares<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table style=\"border-collapse:collapse;width:100%;\">\n<tr>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Voice<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">View<\/th>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Biyani<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">A control premium of about 15% over the undisturbed price is reasonable; the market price reflects scarcity of free float<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Iyer<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">The independent valuation should be examined for assumptions, peer multiples and asset adjustments; core margins have moderated<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">The Next Read (Rushabh Shah)<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Good value for control of a bank with 0.15% net NPAs and a 26.65% capital ratio, but minority holders got liquidity, not a premium<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">CareEdge<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">FY26 profit was lifted by provision reversals; net interest margin fell from 3.95% to 3.18%<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">EAS Sarma<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Objects to the 49% foreign ownership limit for new private banks<\/td>\n<\/tr>\n<\/table>\n<p>These are commentators and analysts of different kinds, and I did not find any brokerage rating or target price for IDBI Bank shares after the deal. The Next Read piece is a personal analysis, and its conclusion is the author&#8217;s own.<\/p>\n<p><strong>Risk:<\/strong> If profit was inflated by provision write-backs, the multiple on normal earnings is higher than 9 times.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Open_Offer_Free_Float_and_What_Minority_Holders_Face\"><\/span><strong>Open Offer, Free Float and What Minority Holders Face<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table style=\"border-collapse:collapse;width:100%;\">\n<tr>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Point<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Detail<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Status<\/th>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Mandatory open offer<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Up to 26%, roughly 280 crore shares or about Rs 22,600 crore at Rs 81<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">One author&#8217;s calculation; unverified<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Offer price rule<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Higher of Rs 81 and the 60 day average market price<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">One author; unverified<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Public shareholders<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About 5.28%, about Rs 4,600 crore at Rs 81<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">One author<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Expected completion<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">By March 2027<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">One author<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">IDBI Bank shares versus deal price<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About Rs 84 against Rs 81, around 4% above (my calculation)<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Price on 15 Oct<\/td>\n<\/tr>\n<\/table>\n<p>If the open offer works as described, Rs 81 may act as a floor for holders of IDBI Bank shares, but with the stock above Rs 81 few holders would tender. Equentis does not mention an open offer, so check the SEBI filings.<\/p>\n<p>After closing, the government&#8217;s 15% and LIC&#8217;s 19% are an overhang on IDBI Bank shares, since LIC is reported to cut to 15% within two years. Fairfax has also proposed adding Digit Insurance and IIFL Capital to the bank, subject to approval.<\/p>\n<p><strong>Risk:<\/strong> A thin float means sharp swings in both directions, as seen from the 13% jump earlier in the week to the 7% fall.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Should_You_Buy_IDBI_Bank_Shares_to_Reap_Profits_Later\"><\/span><strong>Should You Buy IDBI Bank Shares to Reap Profits Later?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table style=\"border-collapse:collapse;width:100%;\">\n<tr>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Case for buying IDBI Bank shares<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Case against<\/th>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">A professional owner may raise returns on assets<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Price is already close to the deal price<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Thin float can lift IDBI Bank shares on good news<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Same thin float causes sharp falls<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Open offer may set a floor at Rs 81<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Completion is not certain until approvals arrive<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Low NPAs and a high capital ratio<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Margin has fallen and profit had write-back help<\/td>\n<\/tr>\n<\/table>\n<p>The payoff depends on how fast Fairfax can improve margins and whether the market has already priced the improvement. Investors who buy for a quick gain face event risk until the approvals come.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_to_Watch_Next\"><\/span><strong>What to Watch Next<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ol>\n<li>Signing of definitive agreements and the RBI fit and proper decision for IDBI Bank shares<\/li>\n<li>CCI clearance and the SEBI open offer filing<\/li>\n<li>The Q2 results of the bank, for margin and credit cost, which drive IDBI Bank shares<\/li>\n<li>Fairfax plans for Digit Insurance, IIFL Capital and CSB Bank<\/li>\n<li>Brokerage notes with target prices for IDBI Bank shares<\/li>\n<\/ol>\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>IDBI Bank shares fell because the Rs 81 deal price is below the recent market price, while experts split on whether it is good value or fair. The approvals, the open offer and earnings quality will decide the outcome, so treat any buy for profits later as a high risk idea.<\/p>\n<div style=\"background:#CC0000;border-radius:8px;padding:16px 20px;margin:24px 0;\">\n<p style=\"color:#FFFFFF;font-size:13px;line-height:1.7;margin:0;\"><strong style=\"color:#FFFFFF;\">Disclaimer:<\/strong> Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).<\/p>\n<\/p><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions\"><\/span><strong>Frequently Asked Questions<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Why_did_IDBI_Bank_shares_fall_after_the_Fairfax_deal\"><\/span><strong>Why did IDBI Bank shares fall after the Fairfax deal?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> The deal price of Rs 81 is about 10% below the previous close, and the stock had rallied sharply before, so profit booking added to the fall.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_is_the_Fairfax_deal_for_IDBI_Bank_shares\"><\/span><strong>What is the Fairfax deal for IDBI Bank shares?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> A Fairfax backed buyer will acquire 60.72% for Rs 52,878 crore, with 30.48% from the government and 30.24% from LIC.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Is_Rs_81_a_fair_price_for_IDBI_Bank_shares\"><\/span><strong>Is Rs 81 a fair price for IDBI Bank shares?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> It is about 6.6% above an independent valuation of Rs 75.99 and about 15% above the pre-bid price, but about 10% below the last close. Experts disagree.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Will_there_be_an_open_offer_for_IDBI_Bank_shares\"><\/span><strong>Will there be an open offer for IDBI Bank shares?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> One author says a mandatory offer for up to 26% will follow at not less than Rs 81, but other reports do not mention it, so check the SEBI filings.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Should_I_buy_IDBI_Bank_shares_to_reap_profits_later\"><\/span><strong>Should I buy IDBI Bank shares to reap profits later?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> That depends on your risk limit. The gain depends on Fairfax lifting returns, and approvals are pending, so this article does not recommend it.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_approvals_are_pending_for_IDBI_Bank_shares\"><\/span><strong>What approvals are pending for IDBI Bank shares?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> The RBI fit and proper assessment, CCI clearance, the SEBI open offer and the signing of definitive agreements.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"When_will_the_deal_be_completed\"><\/span><strong>When will the deal be completed?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> One analyst expects completion by March 2027, but no official date is confirmed.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Is_this_article_investment_advice\"><\/span><strong>Is this article investment advice?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> No. It is educational and not a recommendation to buy or sell.<\/p>\n<div class=\"faq-schema\"><script type=\"application\/ld+json\">{\"@context\":\"https:\/\/schema.org\",\"@type\":\"FAQPage\",\"mainEntity\":[{\"@type\":\"Question\",\"name\":\"Why did IDBI Bank shares fall after the Fairfax deal?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"The deal price of Rs 81 is about 10% below the previous close, and the stock had rallied sharply before, so profit booking added to the fall.\"}},{\"@type\":\"Question\",\"name\":\"What is the Fairfax deal for IDBI Bank shares?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"A Fairfax backed buyer will acquire 60.72% for Rs 52,878 crore, with 30.48% from the government and 30.24% from LIC.\"}},{\"@type\":\"Question\",\"name\":\"Is Rs 81 a fair price for IDBI Bank shares?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"It is about 6.6% above an independent valuation of Rs 75.99 and about 15% above the pre-bid price, but about 10% below the last close. Experts disagree.\"}},{\"@type\":\"Question\",\"name\":\"Will there be an open offer for IDBI Bank shares?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"One author says a mandatory offer for up to 26% will follow at not less than Rs 81, but other reports do not mention it, so check the SEBI filings.\"}},{\"@type\":\"Question\",\"name\":\"Should I buy IDBI Bank shares to reap profits later?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"That depends on your risk limit. The gain depends on Fairfax lifting returns, and approvals are pending, so this article does not recommend it.\"}},{\"@type\":\"Question\",\"name\":\"What approvals are pending for IDBI Bank shares?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"The RBI fit and proper assessment, CCI clearance, the SEBI open offer and the signing of definitive agreements.\"}},{\"@type\":\"Question\",\"name\":\"When will the deal be completed?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"One analyst expects completion by March 2027, but no official date is confirmed.\"}},{\"@type\":\"Question\",\"name\":\"Is this article investment advice?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"No. It is educational and not a recommendation to buy or sell.\"}}]}<\/script><\/div>\n","protected":false},"excerpt":{"rendered":"<p>IDBI Bank shares fell about 7% after the Rs 81 Fairfax deal. See the valuation, the open offer, experts&#8217; views, pending approvals and the risks.<\/p>\n","protected":false},"author":28,"featured_media":312668,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[842],"tags":[1162,12717,11993,11991,12718,8067],"class_list":["post-312671","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-bank-stocks","tag-fairfax-idbi-bank-deal","tag-idbi-bank-share-price","tag-idbi-bank-shares","tag-lic-idbi-stake","tag-open-offer"],"metadata":{"rank_math_internal_links_processed":["1"],"_thumbnail_id":["312668"],"rank_math_title":["IDBI Bank Shares After the Fairfax Deal: Experts' Views"],"rank_math_description":["IDBI Bank shares fell about 7% after the Rs 81 Fairfax deal. See the valuation, the open offer, what experts say, the approvals pending and the risks before buying."],"rank_math_focus_keyword":["IDBI Bank shares"],"rank_math_robots":["a:2:{i:0;s:7:\"noindex\";i:1;s:8:\"nofollow\";}"]},"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/univest.in\/blogs-2\/wp-content\/uploads\/2026\/10\/idbi-bank-shares-crashed-after-fairfax-deal-should-you-buy-this-to-reap-profits.webp","_links":{"self":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts\/312671","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/users\/28"}],"replies":[{"embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/comments?post=312671"}],"version-history":[{"count":1,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts\/312671\/revisions"}],"predecessor-version":[{"id":312672,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts\/312671\/revisions\/312672"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/media\/312668"}],"wp:attachment":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/media?parent=312671"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/categories?post=312671"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/tags?post=312671"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}