As of 1:52 PM, IDBI Bank shares were quoting at 78.20 rupees on NSE, down 15.17 percent from Friday’s close of 92.18 rupees. The scrip touched a low of 77 rupees during the session, with opening trades at 77.56 rupees marking a 15.86 percent slump. This sharp correction comes as markets digest the government’s decision to reject all bids.

Bids submitted by global players like Canada’s Fairfax Financial Holdings and UAE’s Emirates NBD failed to meet the government’s reserve price, prompting the cancellation. The divestment, launched on January 7, 2023, via DIPAM’s call for expressions of interest, was poised for closure with a winner announcement by month-end.

The stake sale involved the government’s 30.48 percent holding, estimated at 36,000 crore rupees, alongside LIC’s 30.24 percent divestment totaling 72,000 crore rupees for 60.72 percent equity. Together, they control 94.71 percent of the bank, positioning IDBI as a prime privatization target.

External factors like escalating Middle East tensions have complicated disinvestment across sectors, contributing to delays. Insiders hint at a potential reboot of the process later, with refined strategies to attract stronger offers. Investors, however, are left grappling with heightened uncertainty, as the bank’s future ownership hangs in balance.

This development raises broader questions about India’s disinvestment roadmap for FY25, especially with fiscal targets looming. Market watchers will closely monitor government statements for clues on revival plans, while IDBI Bank’s shares remain under pressure.