The government will divest a stake of up to 3% in the Indian Overseas Bank

Chennai, 19/02/2015: A view of the Indian Overseas Bank (IOB) head office at Anna Salai in Chennai. Photo: Raghunathan SR / The Hindu | Photo credit: RAGHUNATHAN SR

According to the official notification of the OFS, as disclosed by IOB to the stock exchanges, the OFS will be executed at a floor price of Rs 34 per share, which represents a discount of around 7.6 percent to IOB’s last closing price of Rs 36.57.

The OFS is being conducted to achieve minimum public shareholding in the bank as prescribed by SEBI rules, the release added. The government currently owns approximately 94.6 shares per share as of September and will continue to be the promoter of IOB after the transaction.

The OFS size includes 57.7 crore shares. This includes a base offering of 38.5 crore shares, while the green shoe option, depending on subscription demand, will allow the government to sell an additional 19.2 crore shares.

“In addition, 150,000 shares of the Bank (equivalent to 0.001 percent of the total issued and paid-up share capital of the Bank) may be offered to eligible employees of the Bank through the stock exchange mechanism, in accordance with the terms of the OFS Guidelines, subject to approval by the competent authority,” the OFS notice said.

The OFS will take place over two trading days. Although non-retail investors can make a bid on December 17, retail investors are allowed to participate on December 18.

Retail investors will receive a reserve of at least 10 percent of the offering, while investment funds and insurance companies will receive a reservation of 25 percent within the non-retail category.

“The offer for sale in Indian Overseas Bank (IOB) will open tomorrow for non-retail investors. Private investors can bid on Thursday. The government is offering to disinvest 2 percent shares in the bank, with another 1 percent as green shoe option,” the Department of Investment and Public Asset Management (DIPAM) also announced on Tuesday.

Earlier this month, the government also divested about 6 percent stake in Bank of Maharashtra, in a sale aimed at maintaining required public shareholdings.

Published on December 16, 2025