Fairfax’s deal for IDBI includes no major investment banks

Skip to Content News Archives Economy Defence Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Defence Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Defence Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomeFinanceBankingNewsFairfax's deal for IDBI marks includes no major investment banksThe US$5.6 billion sale to Canadian billionaire Prem Watsa’s firm was approved WednesdayAuthor of the article:Manuel Baigorri and Baiju KaleshThe IDBI Ltd. bank headquarters in Mumbai, India, on Friday, Oct. 21, 2022. Photo by Indranil Aditya/BloombergFairfax Financial Holdings Ltd.’s acquisition of a controlling stake in IDBI Bank Ltd. was the biggest foreign investment in India’s banking sector. It was also unusual in that no major investment banks were involved.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThe US$5.6 billion sale to Canadian billionaire Prem Watsa’s firm was approved Wednesday. Unlike other multibillion-dollar deals, Fairfax and IDBI decided to handle the transaction internally, without even starting a formal process to hire financial advisers.This advertisement has not loaded yet, but your article continues below.Prime Minister Narendra Modi’s government has been looking to sell the Mumbai-based lender for several years, part of its efforts to pare state ownership in the banking sector. But the sale had often run into hurdles such as delays in securing regulatory approvals.Breaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try againKPMG secured a role advising New Delhi on the sale. A statement announcing the transaction said two professional agencies helped come up with a fair valuation for the government, without naming any other advisers.The strategy would’ve helped Fairfax and IDBI save millions of dollars, even though India is notorious for paying low advisory fees. Investment bankers, meanwhile, missed a potential payday and a boost up the league tables.While India maintains tight oversight of ownership structures and voting rights, it has become more receptive to foreign interest in its banking assets. Some of the biggest inbound deals have involved buyers from the Middle East and Japan. Emirates NBD Bank PJSC bought a majority stake in RBL Bank Ltd., while International Holding Co. invested in Sammaan Capital Ltd. Mitsubishi UFJ Financial Group Inc., Sumitomo Mitsui Financial Group Inc. and Mizuho Financial Group Inc. have all bought stakes in Indian financial firms.Major global investment banks advised on all of those deals. Fairfax and IDBI may still bring in an investment bank later for the open offer to shareholders, but for now the usual suspects are left on the sidelines.Representatives for IDBI, Fairfax and the Finance Ministry didn’t immediately respond to requests seeking comment.With assistance from Siddhi Nayak, Anirban Nag, Melissa Shin and Ruchi Bhatia.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.