India, Oct. 16 -- Shares of IDBI Bank ended nearly 8 per cent lower on Thursday after rallying sharply in the previous session as the Cabinet cleared Fairfax Financial's proposal to acquire a 60.72 per cent stake in the lender for about Rs 53,000 crore.

The stock tanked 7.71 per cent to settle at Rs 83.47 on the BSE. During the day, it dropped 8.72 per cent to Rs 82.55. At the NSE, the stock dived 7.67 per cent to end at Rs 83.45. The company's market valuation eroded by Rs 7,494.43 crore to Rs 89,750.30 crore. On Wednesday, shares of IDBI Bank surged 9 per cent before the announcement, adding Rs 8,086 crore to its market valuation.

Canada's Fairfax Financial Holdings will acquire a 60.72 per cent stake in IDBI Bank for about Rs 53,000...