IDBI Bank shares surged as much as 4% in Tuesday's trading session on the National Stock Exchange, opening at ₹85 compared to the previous close of ₹84.07.
The rally was triggered by reports that the Indian government is nearing acceptance of an offer from Fairfax Financial Holdings Ltd. for the Mumbai-based lender, potentially at a slightly higher price than initially proposed.
According to people with knowledge of the matter, the Canadian investment giant may increase its per-share bid to secure the transaction.
This development marks a significant step in the privatization of IDBI Bank, which has been on the government's divestment list for years.
The potential sale represents a major strategic shift for the lender, moving it from state ownership to private equity control under Fairfax.
The deal aligns with Fairfax's expanding presence in the Indian market.