Indian Overseas Bank approves ₹5,000 crore fund raise via FPO, QIP, rights issue

Public-sector lender Indian Overseas Bank on Thursday (May 21) said its board has approved a capital raising plan of up to ₹5,000 crore for FY27.

The bank said the equity capital may be raised through follow-on public offer, rights issue, qualified institutional placement, preferential issue or a combination of these, in one or more tranches, subject to regulatory approvals.

The board also approved the offer of 10 crore new equity shares of face value ₹10 each under an employee share purchase scheme named IOB-ESPS 2026-27. These shares will rank pari passu with existing equity shares.

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In addition, the bank approved issuance of Basel III-compliant Tier II bonds up to ₹1,000 crore with or without a green shoe option. The bonds may be issued in one or more tranches through private placement or public issue, domestically or overseas, subject to approvals.

Indian Overseas Bank also approved appropriation of accumulated losses as on March 31, 2026, from the share premium account, subject to statutory approvals.

Shares of Indian Overseas Bank ended at ₹33.77, up by ₹0.37, or 1.11%, on the BSE.

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