Government Expands IOB Stake Offer Amid Investor Enthusiasm

The government is increasing its stake divestment in Indian Overseas Bank by exercising the green shoe option, following strong investor demand. The Offer for Sale (OFS) allows non-retail investors to subscribe at Rs 34 per share, with retail investors bidding on December 18, 2025. The move aligns with SEBI's mandates.

The government announced on Wednesday that it will exercise the green shoe option to divest an additional 3 per cent stake in Indian Overseas Bank (IOB), responding to an overwhelming investor response on the first subscription day.

The Offer for Sale (OFS) for IOB commenced for non-retail investors at a floor price of Rs 34 per share. Demand surpassing 41 crore shares against the 34.66 crore initially on offer prompted this decision. Retail investors are set to participate on December 18, 2025, according to Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla.

The government's plan involves selling up to 38.51 crore shares with an option for an additional 19.25 crore shares, equating to 3 per cent of the total equity share capital of the bank. This strategic move complies with SEBI's rule mandating a minimum 25 per cent public shareholding for all listed companies.

(With inputs from agencies.)