The Government of India has announced an Offer for Sale (OFS) in Indian Overseas Bank (IOB) to reduce a portion of its stake in the public sector lender.
Details of the Offer for Sale
| Parameter | Details |
| Stake Offered | Up to 2% of outstanding equity |
| Greenshoe Option | Additional 1% stake |
| Floor Price | ₹34 per share |
| Discount to Tuesday’s Closing Price | ~4.4% |
| Discount to QIP Issue Price (₹40.57) | ~16% |
Recap of QIP Fundraise
Earlier in March, IOB raised ₹1,436 crore via a Qualified Institutional Placement (QIP), issuing 35.41 crore shares to institutional investors. Key allocations included:
| Investor | Allocation (%) |
| Life Insurance Corporation of India (LIC) | 34.8% |
| IIFL Finance | 14% |
| SBI Pension Fund | 7% |
| LIC Pension Fund | 7% |
Despite the OFS, the government will continue to retain over 94% stake in Indian Overseas Bank as of the September quarter.
Summary:
The government plans to divest up to 2% stake in Indian Overseas Bank through an OFS at a floor price of ₹34 per share, with an optional 1% greenshoe. The sale follows a ₹1,436 crore QIP earlier this year, while the government will maintain majority control.
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