“The offer for sale in Indian Overseas Bank received good response from non-retail investors today.”Against around 34.66 cr shares on offer, demand was received for over 41 cr shares. The government has decided to exercise the green shoe option. Private investors are allowed to bid tomorrow, December 18, 2025,” Department of Investment and Public Asset Management (DIPAM) secretary Arunish Chawla said in a post on
The government has proposed to sell a maximum of 38.51 crore (38,51,31,796) shares or a base offer of 2 per cent, with an option to sell an additional 19.25 crore (19,25,65,898) shares, amounting to 1 per cent of the bank’s total issued and paid-up share capital, IOB said in a regulatory filing.
The government currently holds 94.61 percent stake in the Chennai-based bank.
In addition, 1,50,000 equity shares (equal to 0.001 percent of the total issued and paid up share capital of the bank) may be offered to eligible employees in accordance with the terms and conditions set forth in the OFS Guidelines, subject to approval by the competent authority. Eligible employees can apply for shares up to a maximum of Rs 5,00,000, it added.
This is in line with the Securities Contract (Regulation) Rules of the Securities and Exchange Board of India, which require all listed companies, including those in the public sector, to have a minimum public shareholding of 25 percent.
Capital market regulator Sebi has extended forbearance to CPSEs and public sector financial institutions till August 2026.
The other three lenders where government stake exceeds the minimum threshold for public shareholding are Punjab & Sind Bank (93.9 percent), UCO Bank (91 percent) and Central Bank of India (89.3 percent).
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