Government to sell up to 3% equity in Indian Overseas Bank via OFS

The government of India, through the Department of Financial Services, on Tuesday (December 16) announced an offer for sale of up to 3% equity in Indian Overseas Bank through the stock exchange mechanism.

The base offer consists of 38.51 crore equity shares, representing 2% of the bank’s paid-up equity share capital. The offer includes a green shoe option of up to 19.26 crore equity shares, representing an additional 1%, taking the total offer size to 57.77 crore equity shares, or 3% equity.

The offer will open on December 17, 2025, for non-retail investors and on December 18, 2025, for retail investors, eligible employees and non-retail investors who choose to carry forward their unallotted bids. Bidding will be conducted on a separate window of BSE and NSE between 9.15 am and 3.30 pm on both days.

The floor price for the offer has been fixed at ₹34 per equity share. There is no discount for retail or employee categories. Up to 1,50,000 equity shares, equivalent to 0.001% of the bank’s paid-up equity capital, may be offered to eligible employees, subject to approval from the competent authority. Eligible employees can apply for shares up to ₹5 lakh, with a maximum allotment of ₹2 lakh per employee.

Goldman Sachs (India) Securities Private Limited has been appointed as the seller’s broker for the offer. The disinvestment is being undertaken to meet minimum public shareholding requirements under applicable regulations.

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The offer for sale will open on Wednesday for non-retail investors. Retail investors will be able to bid on Thursday.

IOB's shares ended in the red today at ₹36.57 apiece on the BSE today, December 16.

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