Government proposes to sell 2.3% of total equity shares of Indian Overseas Bank
The Government of India is launching an Offer for Sale (OFS) of its equity shares in Indian Overseas Bank. This divestment is being conducted through the stock exchange mechanism by the Ministry of Finance to meet SEBI regulatory standards.
New Delhi: The Government of India has Proposed offer for sale of equity shares of a face value of Rs 10 each of Indian Overseas Bank by its Promoter, the President of India, acting through the Department of Financial Services, Ministry of Finance, Government of India, through the stock exchange mechanism in accordance with the relevant circulars issued by the Securities and Exchange Board of India in this regard.
According to the Notice dated December 16, 2025 sent by the Indian Government through Department of Financial Services, Finance Ministry, acting as promoter of the Bank to the Stock Exchanges, proposed to sell up 38,51,31,796 Equity Shares of the Bank, (representing 2% of the total paid up equity share capital of the Bank) ("Base Offer Size"), on December 17, 2025, ("T day") (for non-Retail Investors only).
Further on December 18, 2025 (“Т+1 day”) (for Retail Investors, Employees and for non-Retail Investors who choose to carry forward their un-allotted bids from T day) with an option to additionally sell 19,25,65,898 Equity Shares (representing 1% of the total issued and paid up equity share capital of the Bank) (the "Oversubscription Option").
This will be done through the separate designated window of BSE Limited and National Stock Exchange of India Limited (NSE) and such offer hereinafter referred as the "Offer"), and in the event that the Oversubscription Option exercised, the Equity Shares forming part of the Base Offer Size and the Oversubscription Option will represent 3% of the total paid-up Equity Share capital of the Bank and will collectively be referred to as the "Offer Shares" while in the event that such Oversubscription Option is not exercised, the Equity Shares forming part of the Base Offer Size will continue be referred to as "Offer Shares").
Further, the government wishes for Oversubscription Option to the extent of 7,60,94,197 Equity Shares (representing 0.395% of the total paid-up equity share capital of the Bank) in addition to 38,51,31,796 Equity Shares of the Bank, (representing 2% of the total paid-up equity share capital of the Bank) forming part of the Base Offer Size.
Accordingly, the total Offer Size will be up to 46,12,25,993 Equity Shares (representing 2.395% of the total paid up equity share capital of the Bank) of which 4,61,22,600 i.e. 10% of the Offer, would be available for Retail Category on T+1 day, i.e. December 18, 2025, subject to receipt of valid bids, as part of the Offer.
Additionally, 1,50,000 Equity Shares of the Bank (equivalent to 0.001% of the total issued and paid-up equity share capital of the Bank) will also be offered to the Employees, as part of the Offer.