Valarth's valuation engine puts IDBI Bank at ₹56.79 to ₹94.56 a share, ₹70.76 in the middle, with medium confidence. The ₹81 a share in the stake sale sits inside the range, above its middle; the market price of ₹83.45 on 15 Oct 2026 sits inside the range, above its middle.
On 14 October 2026 the Cabinet Committee on Economic Affairs approved the sale of 60.72% of IDBI Bank to a Fairfax Financial Holdings company, 10955230 Canada Inc.
The government and LIC invite bids for 60.72% of the bank, with management control.
The exchange asks IDBI Bank about reports that the government is close to accepting a sweetened Fairfax offer.
The cabinet committee approves the sale to a Fairfax company for ₹52,878 crore, about ₹81 a share.
The RBI's fit-and-proper check of the buyer, then the share purchase agreement.
An offer to public shareholders under SEBI's takeover rules; price and size not yet set.
After the sale LIC has two years to come down to 15%; Fairfax has a five-year lock-in, then 15 years to reach the RBI's 26% limit for a promoter.
The sellers are the Government of India (30.48%) and LIC (30.24%). The price is ₹52,878 crore, about ₹81 a share; two independent valuers had put fair value at ₹75.99 a share.
Every method's answer on one line, with the market price and Fairfax's price across them. Methods partly disagree (CV 16%); range widened to cover the method spread and confidence lowered one level.
| Method | Weight | Low | Value | High |
|---|---|---|---|---|
| Residual income | 60% | ₹52.80 | ₹70.66 | ₹106 |
| Dividend discount model | 15% | — | ₹68.08 | — |
| Peer P/B Peer median P/B applied to book value. |
12% | ₹69.82 | ₹88.41 | ₹109 |
| Justified P/B | 12% | — | ₹56.79 | — |
Priced for a 15% ROE; has earned 12%.
Today's price assumes a steady 14.8% return on equity for 10 years; the company has earned 12.3% on average over the last 3 years. How a reverse valuation works →
A bank's assets and debts are its raw material, so it is valued on its book and on what it earns on that book, not on cash flow.
The range is the spread of these cases, each run through the same residual-income model.
The years the model learns from. Losses on the way down, a recovery since. What ROE means for a bank →
ControlThe ₹81 buys 60.72% and the right to run the bank; the range values an ordinary share in the business as it earns today. The two answer different questions.
The open offerIts price and size are not yet set, so nothing about it is in the range.
The recent rise in returnsThe base case starts from the three-year average return on equity (12.3%); the last twelve months earned 13.5% on year-end book. If that level holds, the value is higher, which is the direction the bull case shows.
The pastIDBI lost money in four of the last ten years. The model reads that as no moat: its base case has returns rising only to the cost of equity, never above it.
Educational research built from public filings and a published method. A value range, not a target price and not a recommendation to buy, sell or hold. Valarth is not a SEBI-registered research analyst or investment adviser.
