Reply to clarification sought by Exchanges on market rumour verifications
Nature of Disclosure: Regulatory response to BSE query regarding market rumors about IDBI Bank's strategic disinvestment process.
Background: IDBI Bank received a BSE letter (L/SURV/ONL/RV/SG/(2026-2027)/56) dated July 14, 2026 seeking clarification on a news report appearing on Business Standard website dated July 14, 2026 quoting "Govt close to accepting sweetened Fairfax Financial offer for IDBI Bank".
Key Clarifications Provided:
1. Confidential Process: The bank clarified that the proposed Strategic Disinvestment of IDBI Bank Limited is a confidential process being undertaken by the Government of India (GOI), and therefore the bank is not in a position to either confirm or deny the referenced news report.
2. Negotiation Process: The strategic disinvestment is being undertaken through a competitive bidding process in line with GOI disinvestment guidelines, which do not entail negotiations. IDBI Bank has had no role to play in any negotiations.
3. Historical Disclosures Timeline: The bank provided a chronological sequence of previous disclosures made to Stock Exchanges:
- May 5, 2021: In-Principle Approval received from Cabinet Committee on Economic Affairs for Strategic Disinvestment along with transfer of management control
- October 7, 2022: KPMG India appointed as Transaction Advisor and Link Legal as Legal Advisors for providing advisory services and managing the transaction. GOI shall sell shares representing 30.48% and LIC shall sell shares representing 30.24%
- October 7, 2022: GOI and LIC issued Preliminary Information Memorandum for inviting Expression of Interest
- December 14, 2022: Amendment to the Preliminary Information Memorandum for inviting Expression of Interest
- January 5, 2023: SEBI Approval for re-classification of GOI as public Shareholder upon completion of Sale
- August 23, 2025: SEBI Approval for re-classification of LIC as public Shareholder upon completion of Sale
4. Undisclosed Information: The bank confirmed it has not received any communication from GOI regarding finalization of any transaction under the ongoing strategic disinvestment process. The bank is not aware of any undisclosed material information leading to the referenced news report and increase in share price.
5. Regulatory Proceedings: The referenced news report does not relate to any regulatory/legal proceedings.
Compliance Statement: The bank confirmed it has promptly intimated Stock Exchanges of all events and information having bearing on operations and performance, including all price-sensitive information, in compliance with SEBI (LODR) Regulations, 2015.
Regulatory Reference: This communication is being shared in accordance with Regulation 30 of the SEBI (LODR) Regulations, 2015.
Undertaking: The bank undertook to issue further clarifications/details on receipt of any communication from GOI regarding the same.