No final decision has been taken yet. However, sources indicate that the stake sale process has not been shelved, and the government is exploring a viable way forward, particularly on determining an “unimpacted price” for the transaction.
The government is grappling with wide fluctuations in the stock’s valuation. IDBI shares have seen a broad 52-week range — roughly between ₹60–65 on the lower end and about ₹118 at the peak — complicating efforts to arrive at a fair benchmark price.
Consequently, a review of the reserve price methodology is also likely, as IDBI Bank’s financial bids are below the minimum price fixed by the government. However, after the recent market volatility the situation has reversed, with the current market price of IDBI Bank having fallen below the bid price.
While this raises hopes within the government that a recovery closer to the bid price could help revive the transaction , the option of inviting fresh bids is also there. In that case the bidders themselves may quote a new price.
Sources add that a “technical and financial evaluation” of the disinvestment is currently underway. A decision on the next course of action is expected in the next 10 -14 days, with all options remaining open.
On March 13 , the government opened the financial bids for IIDBI which turned out to be below the reserve price, thereby stalling the transaction.
First Published: Apr 8, 2026 10:56 PM IST
