New Delhi, June 25 -- The government's long-delayed sale of IDBI Bank appears to be back on track after Fairfax India Holdings submitted a revised proposal, while the Centre could also emerge as a minority shareholder in AI startup Sarvam, according to separate media reports.

Meanwhile, business-to-business edtech platform Toddle has launched a fundraising process that could signal renewed investor appetite for the education technology sector beyond PhysicsWallah, according to another report.

IDBI Bank

Toronto-listed investment firm Fairfax India Holdings has held fresh discussions with the Department of Investments and Public Assets Management (DIPAM) regarding the disinvestment of IDBI Bank, according to a Moneycontrol report, which cited people familiar with the matter.

The development comes after the disinvestment process stalled in February when bids from potential buyers reportedly came in below the reserve price.

Fairfax has submitted a revised bid and proposed positioning IDBI Bank as its anchor investment in the financial services sector, the report said. The proposal is under review and the deal appears to be "headed in the right direction", the report said.

The divestment process could conclude by September, although the exact timeline remains uncertain. The deal is likely to fetch about Rs 50,000 crore (just over $5 billion) for the two main shareholders: the Government of India and Life Insurance Corporation of India (LIC), the report said.

Fairfax has also committed that IDBI Bank would be its only investment in the banking space in India. To comply with the Reserve Bank of India's norms prohibiting promoters from holding multiple banking licences, Fairfax would fully divest its 40% stake in CSB Bank after the acquisition of IDBI Bank, the report added.

Fairfax may have offered around Rs 77 per share, implying a price-to-book multiple of about 1.2x based on trailing 12-month numbers, the report said. This is broadly in line with IDBI Bank's current trading multiple of about 1.3x price-to-book.

Sarvam

The Government of India could end up holding a small stake in generative AI startup Sarvam as part of the company's ongoing $300 million (Rs 2,833 crore) funding round, according to The Economic Times, citing people familiar with the matter.

The Centre could acquire a 1-2% stake in the startup, which is being valued at around $1.5 billion in the ongoing round, marking a rare instance of the government taking a direct equity stake in a private AI startup through non-cash support, the report said.

Sarvam had been allocated compute infrastructure under the IndiaAI Mission and, in return, issued compulsorily convertible debentures (CCDs). These securities are set to convert into equity as part of the current fundraising round, the report said.

Last week, Sarvam announced it had raised $234 million in a round led by software services company HCLTech, with participation from Bessemer Venture Partners, Khosla Ventures and Peak XV Partners. Sarvam is expected to raise additional capital to take the broader round size to about $300 million.

Toddle

Business-to-business (B2B) edtech platform Toddle has launched a managed fundraising process that could signal a revival in investor interest in the sector beyond PhysicsWallah.

Toddle is seeking to raise $50-100 million through a mix of primary and secondary transactions, according to a Mint report, which cited people familiar with the matter.

The Bengaluru-based startup has hired US investment bank Brown Gibbons Lang & Company (BGL) to run the process and has begun reaching out to investors, particularly in the US, the report said.

If completed, the transaction would rank among the largest fundraises in India's education technology sector outside of PhysicsWallah.

Founded in 2019 by Aakash Goel, Kunal Gupta and Nikhil Sakhuja, Toddle offers curriculum planning, classroom management, assessment and communication software to K-12 schools globally.

Published by HT Digital Content Services with permission from VC Circle.