IDBI Bank shares drop 10.5% amid ongoing disinvestment delays

The disinvestment plan involves the government and LIC offloading a combined 60.72 per cent stake in the bank. Canada-based Fairfax Holdings has been identified as a potential buyer in the strategic sale process, which stalled earlier when no bids met the government's valuation expectations.

Market analysts attributed the sell-off to investor anxiety over the prolonged overhang. One expert noted that the lack of a clear resolution is creating sustained selling pressure in the short to medium term, while another highlighted the stock's historical sensitivity to any news related to the stake sale process.

Additional concerns have been raised about the transaction structure, including potential triggers for a mandatory open offer under SEBI takeover rules, foreign ownership limits, and implications for employee service conditions. These issues were flagged in a recent correspondence to the Finance Minister by a former government secretary.

On the technical front, the Bank Nifty index closed at its lowest level since July 2026, breaking below key moving averages, with immediate support identified at 56,300. The broader market reaction underscores how deeply the disinvestment uncertainty is affecting sentiment around IDBI Bank and the banking sector at large.