West Asia conflict has put disinvestment plans on hold for a few months, Centre to review timelines.
The government’s disinvestment drive has hit a setback after the strategic sale of IDBI Bank was called off due to lower-than-expected bids. The Centre had aimed to raise over ₹70,000 crore from selling a 61% stake, but valuations failed to meet expectations. Sources indicate the government has not shelved the plan entirely and is considering two key options — revisiting the sale when market and geopolitical conditions improve, or exploring a merger of IDBI Bank within the public sector banking space. While a fresh attempt remains the more likely route, achieving better valuations could be challenging. The development raises questions over the government’s broader privatisation roadmap and FY26 disinvestment targets.
The report added that a key panel of ministers overseeing the divestment process will soon be briefed on the developments and will take a final call.
IDBI Bank: The decline follows the Centre's decision to scrap the strategic sale of IDBI Bank. The government called off the sale after financial bids from shortlisted investors fell below the reserve price, highlighting a gap between valuation expectations and investor interest.
Data from the Department of Investment and Public Asset Management shows that receipts have largely come from minority stake sales via the offer-for-sale (OFS) route
Shares of IDBI Bank Ltd tanked more than 15 per cent during the trading session on Monday amid the reports that the government has called off the strategic disinvestment
On Friday, shares of Kotak Mahindra Bank rose 3.35% to close at Rs 422.35 apiece on the BSE. The uptrend was also over the counter of the divestment player, with IDBI Bank shares settling 3.86% higher at Rs 106.92 per share.
The Union government and Life Insurance Corporation of India (LIC) together hold around 90 per cent stake in IDBI Bank. As part of the transaction, the government is divesting its 30.48 per cent stake, while LIC is offloading 30.24 per cent.
Union Budget 2026: Budget focusses on growth priority through investments, fiscal deficit trajectory
Stocks including Adani Group stocks, BSE, Hero MotoCorp, Groww, Mphasis, IDBI Bank, MOIL, Hyundai Motor, Blue Star and more will be in the spotlight on Monday, February 02.
Ahead of the union budget 2026-26, market participants will have a sharp focus on expectations around disinvestment and asset monetisation to fund higher capital expenditure. =




