Government to Divest Stake in Indian Overseas Bank Through Offer for Sale

The government plans to divest up to 3% of its stake in Indian Overseas Bank (IOB) via an Offer for Sale starting Wednesday, aiming to raise around Rs 2,100 crore. The effort is part of strategies to meet regulatory public shareholding requirements, with non-retail bidding opening first.

The Indian government is set to reduce its stake in the Indian Overseas Bank by up to 3% through an Offer for Sale, which begins on Wednesday. The move is expected to raise approximately Rs 2,100 crore, leveraging the current market scenario.

The shares of IOB closed at Rs 36.57 on the Bombay Stock Exchange, depicting a decrease of 1.08% as of the last trading session on Tuesday. The government currently holds a significant 94.61% stake in the bank.

The Offer for Sale is structured to sell 2% initially with a green shoe option of an additional 1%, with provisions for eligible employees. This aligns with SEBI's regulations for listed companies maintaining a minimum public shareholding of 25% amid exceptions for Central Public Sector Enterprises until August 2026.

(With inputs from agencies.)