Business & Finance
Hyderabad‑born Investor Watsa Set to Acquire Majority Stake in IDBI Bank for ₹52,878 Crore
Prem Watsa, who left India in 1972 with only $8, has become the strategic buyer for a 60.72% stake in IDBI Bank in a deal worth ₹52,878 crore. The transaction involves the sale of 30.48% of the bank held by the Government of India and 30.24% held by the Life Insurance Corporation of India (LIC). The deal is still subject to regulatory and other approvals.
Watsa, a Hyderabad native, grew up in a middle‑class family. His father was an educator and principal of Hyderabad Public School. He earned a chemical engineering degree from the Indian Institute of Technology (IIT) Madras in 1971 and later completed an MBA at the University of Western Ontario’s Ivey Business School in 1974.
After his MBA, Watsa worked in sales in Canada, selling furnaces in winter and air conditioners in summer to support his education. He joined a life‑insurance firm in 1974 and stayed until 1983. In 1984 he founded Hamblin Watsa Investment Counsel, and in 1985 he took control of a small Canadian insurance business linked to the trucking industry. He built this business into what became Fairfax Financial Holdings, renamed in 1987.
Watsa has long maintained a strong interest in India. Through Fairfax India Holdings Corporation, established in 2014, he has invested in sectors such as insurance, banking, travel, chemicals and infrastructure. His portfolio includes CSB Bank, IIFL‑related businesses, Sanmar Chemicals and Bangalore International Airport.
In 2020, the Government of India awarded Watsa the Padma Shri, its fourth‑highest civilian honour, for his contributions to trade and industry. He has also received recognition from IIT Madras for his achievements.
Watsa is often referred to as “Canada’s Warren Buffett” because of his long‑term, value‑investing philosophy. His journey from an immigrant student to the head of a global financial services group is described as a story of patience, calculated risk and an enduring connection with India.
Frequently asked questions
What percentage stake is Prem Watsa acquiring in IDBI Bank?
He is acquiring a 60.72% stake.
What is the total value of the acquisition?
The deal is valued at ₹52,878 crore.
Which entities are selling shares in this transaction?
The Government of India is selling 30.48% and the Life Insurance Corporation of India (LIC) is selling 30.24%.