{"id":"f-ebdaa7ae0c-d251d7bb-00e2-527f-80f6-cedb67acc7d0","title":"Government To Divest 3% Stake In Indian Overseas Bank Via OFS, Expected To Raise ₹2,100 Crore","description":"","timestamp":1765954964,"category":"business","headline":"Government To Divest 3% Stake In Indian Overseas Bank Via OFS, Expected To Raise ₹2,100 Crore","modifiedHeadline":"Govt To Sell 3% Stake In Indian Overseas Bank","subCategories":["scid_2c4a86f2"],"region":"IN","bundleMetaData":{"bundleId":"ece1ae3d-908e-48c7-9e53-a4aa910ee4db","bundleTitle":"Grow Your Money","cardData":null},"iabCategoryId":"77","fcSummary":"The government is divesting up to 3% stake in Indian Overseas Bank (IOB) through an Offer for Sale (OFS). The OFS opens for non-retail investors on Wednesday and for retail investors on Thursday. The government aims to garner about ₹2,100 crore from the sale.","summary":"Government to divest 3% stake in Indian Overseas Bank via OFS, aiming to raise ₹2,100 crore. A strategic move for economic gains.","ctaUrl":"https://trends.glance.com/newz/India_News/IN/en/freepressjournal/f-ebdaa7ae0c-d251d7bb-00e2-527f-80f6-cedb67acc7d0","sourceUrl":"https://www.freepressjournal.in/business/government-to-divest-3-stake-in-indian-overseas-bank-via-ofs-expected-to-raise-2100-crore/glance","bannerImage":"https://g-mob.glance-cdn.com/public/fc/image/H3GpohYkfcd0.webp","content":"

New Delhi: The government has decided to divest up to 3 per cent stake in state-owned Indian Overseas Bank (IOB) through an Offer for Sale (OFS) commencing on Wednesday. At the current market price, the government would

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be able to garner about Rs 2,100 crore by offloading up to 3 per cent stake in the bank.

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Offer for Sale in Indian Overseas Bank (IOB) opens tomorrow for Non-Retail investors. Retail investors can bid on Thursday. Government offers to disinvest 2% equity in the bank with an additional 1% as a green shoe option. pic.twitter.com/EFRP1oM1KZ
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— Secretary, DIPAM (@SecyDIPAM) December 16, 2025\n

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Shares of the IOB closed at Rs 36.57 per unit, down 1.08 per cent on the BSE on Tuesday. The government proposes to sell up to 38.51 crore (38,51,31,796) shares or 2 per cent base offer size with an option to additionally sell 19.25 crore (19,25,65,898) shares, representing 1 per cent of the total issued and paid up equity share capital of the bank, IOB said in a regulatory filing.

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\"Offer for Sale in Indian Overseas Bank (IOB) opens tomorrow for Non-Retail investors. Retail investors can bid on Thursday. Government offers to disinvest 2% equity in the bank with an additional 1% as a green shoe option,\" Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla said in a post on X. The government currently holds a 94.61 per cent stake in the Chennai-based bank.

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Additionally, the bank said, 1,50,000 shares of the bank (equivalent to 0.001 per cent of the total issued and paid up equity share capital of the Bank) may be offered to eligible employees in accordance with the terms and conditions provided in the OFS Guidelines, subject to approval from the competent authority.

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The eligible employees may apply for shares amounting up to Rs 500,000, it added. This is in line with the Securities Contract (Regulation) Rules issued by the Securities and Exchange Board of India, which mandate that all listed companies, including those in the public sector, must have a minimum public shareholding of 25 per cent. Capital market regulator Sebi has given forbearance to CPSEs and public sector financial institutions till August 2026.

The other three lenders where the government stake exceeds the minimum public shareholding threshold are Punjab & Sind Bank (93.9 per cent), UCO Bank (91 per cent), and Central Bank of India (89.3 per cent).

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Disclaimer: This story is from the syndicated feed. Nothing has changed except the headline.

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Government To Divest 3% Stake In Indian Overseas Bank Via OFS, Expected To Raise ₹2,100 Crore

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