Mumbai, November 13: Canadian investment firm Fairfax Financial Holdings plans to transform IDBI Bank into a diversified financial services powerhouse with global reach following its proposed acquisition of a 60.72 per cent controlling stake in the lender for ₹52,878 crore.

Fairfax, led by billionaire investor Prem Watsa, has offered ₹81 per share, exceeding the government’s independent valuation benchmark of ₹75.99 per share. The offer represents a 56 per cent premium over IDBI Bank’s regulatory book value of ₹51.85 per share as of March 31, 2026.

Peter Clarke, President and Chief Operating Officer of Fairfax, said the company believes IDBI Bank has the potential to become “the finest universal Indian bank with global reach”. He said the transformation could help increase India’s credit-to-GDP ratio and improve the lives of ordinary citizens.

As part of its expansion strategy, Fairfax plans to integrate its interests in Go Digit General Insurance, Go Digit Life Insurance and IIFL Capital Services with IDBI Bank. The proposed integration would create a diversified financial services platform covering banking, insurance, investment banking and wealth management.

Under the proposed transaction, Fairfax will gain management control, while the Central Government and the Life Insurance Corporation of India (LIC) will retain a combined 34 per cent stake in the bank.

The proposed acquisition comes after IDBI Bank’s financial turnaround following nearly four years under the Reserve Bank of India’s Prompt Corrective Action (PCA) framework. The lender has since returned to profitability, reporting a profit of around ₹9,000–10,000 crore in the previous financial year.

The transaction is subject to regulatory, shareholder and other necessary approvals.