Shares of IDBI Bank fell sharply on Tuesday, dropping as much as about 10%, as investors focused on the price at which Canada-based Fairfax Financial Holdings may acquire a controlling stake in the lender. The fall was much steeper than the broader market, with the Sensex and Nifty also trading lower amid rising crude oil prices and geopolitical concerns.
The sharp decline comes as the long-running IDBI Bank privatisation process moves closer to a conclusion. Fairfax has emerged as the frontrunner to acquire a combined 60.72% stake being sold by the government and Life Insurance Corporation. The government plans to sell 30.48%, while LIC is looking to offload another 30.24%.
