IDBI Bank Shares Plunge 16% as Privatization Stalls: Investors Face Huge Losses

• IDBI Bank shares plummeted by about 16% on Monday following reports that the government may halt its privatization process.
• The government is reportedly not proceeding with the sale of its 60.7% stake as bids received were lower than the determined reserve price.
• Key bidders Fairfax Financial and Emirates NBD submitted offers below expectations; Kotak Mahindra Bank did not bid, reducing buyer interest.
• Reasons for the stalled privatization include a high reserve price, low buyer interest, and global economic uncertainty.
• The combined 95% stake of the government and LIC, along with concerns about the bank's old system, made valuation difficult.