Fairfax Financial Holdings plans to transform the Industrial Development Bank of India (IDBI) into a diversified financial services powerhouse with global reach.
DIMAPUR— Canadian investor Fairfax Financial Holdings plans to transform the Industrial Development Bank of India (IDBI) into a diversified financial services powerhouse with global reach following its proposed INR 52,878-crore acquisition of a 60.72 per cent controlling stake in the lender.
Fairfax, led by billionaire investor Prem Watsa, offered INR 81 per share, exceeding the government's independent valuation benchmark of INR 75.99. The offer represents a 56 per cent premium over IDBI Bank's regulatory book value of INR 51.85 per share as of March 31, 2026.
Peter Clarke, President and Chief Operating Officer of Fairfax, said the company believes IDBI Bank has the potential to become "the finest universal Indian bank with global reach", helping raise India's credit-to-GDP ratio and improve the lives of ordinary citizens.
Fairfax plans to integrate its interests in Go Digit General Insurance, Go Digit Life Insurance and IIFL Capital Services with IDBI Bank, creating a platform spanning banking, insurance, investment banking and wealth management.
The proposed acquisition will give Fairfax management control, while the government and Life Insurance Corporation of India (LIC) will retain a combined 34 per cent stake.
The transaction follows IDBI Bank's financial turnaround after spending nearly four years under the RBI's Prompt Corrective Action framework. The lender has since returned to profitability, reporting a profit of around INR 9,000-10,000 crore in the previous financial year.
The proposed integration remains subject to regulatory, shareholder and other approvals.