The President of India, acting through the Department of Financial Services, Ministry of Finance, plans to sell up to 3% of the total issued and paid-up equity share capital of Indian Overseas Bank through an Offer for Sale (OFS). This includes a base offer size of 2% and an oversubscription option of 1%. The OFS is scheduled for December 17-18, 2025, with a floor price of ₹34 per equity share.
Offer Details
The Government of India, as the promoter of Indian Overseas Bank (IOB), intends to reduce its stake through an Offer for Sale (OFS) mechanism. The OFS will involve the sale of up to 38,51,31,796 equity shares, representing 2% of the total issued and paid-up equity share capital of the Bank (“Base Offer Size”).
Oversubscription Option
In addition to the base offer, there is an option to additionally sell 19,25,65,898 equity shares, representing 1% of the total issued and paid-up equity share capital of the Bank (the “Oversubscription Option”). If fully exercised, the total stake sale would amount to 3%.
Timelines and Pricing
The OFS is scheduled to take place on December 17, 2025, for non-retail investors, and on December 18, 2025, for retail investors and employees. The floor price for the offer has been set at ₹34 per equity share.
Employee Offer
Additionally, 1,50,000 equity shares (equivalent to 0.001% of the total issued and paid-up equity share capital) may be offered to eligible employees of the Bank, subject to approval from the competent authority. Eligible employees may apply for Equity Shares amounting up to ₹500,000.
Allocation Methodology
A minimum of 25% of the Offer Shares shall be reserved for Mutual Funds and Insurance Companies. Minimum 10% of the Offer Shares shall be reserved for allocation to Retail Investors.
Purpose of the Offer
The Offer is being undertaken by the Seller for achieving the minimum public shareholding in the Bank as prescribed under applicable regulations.
Source: BSE
