Government to Offload 3% Stake in Indian Overseas Bank

The Indian Overseas Bank's Offer-for-Sale (OFS) commenced for non-retail investors at Rs 34 per share, aiming to raise approximately Rs 1,960 crore by divesting 3% of the government’s stake. The sale opens to retail investors on Thursday, aligning with regulations for minimum public shareholding in public sector companies.

The Indian Overseas Bank (IOB) has launched an Offer-for-Sale (OFS) for its shares, kicking off on Wednesday for non-retail investors at a floor price of Rs 34 per share. This move is part of the government's strategy to divest part of its holdings in the bank, raising around Rs 1,960 crore through a 3% stake sale.

The offer, following market regulations for minimum public shareholding, will be accessible to retail investors starting Thursday. Closing at Rs 36.57 per share on Tuesday, IOB's shares have shown marginal fluctuation, opening new investment opportunities for stakeholders.

This sale allows eligible employees to apply for shares worth up to Rs 500,000, aligning with the OFS Guidelines. The government's current hold stands at 94.61% in the Chennai-based lender, which is set to gradually align its ownership with regulatory standards demanding at least 25% public ownership across public sector companies by 2026. Similar expectations fall on Punjab & Sind Bank, UCO Bank, and Central Bank of India.

(With inputs from agencies.)