Indian Overseas Bank OFS: Indian Overseas Bank’s offer for sale (OFS) opened for subscription to non-retail investors on Wednesday at a floor price of Rs 34 per share. The government has decided to disinvest up to three percent stake in public sector Indian Overseas Bank (IOB) through Offer for Sale (OFS).
What is the government’s plan?
The government will raise about Rs 1,960 crore by selling three percent stake at the lowest price. According to share sale details, the sale offer to retail investors will open on Thursday. The minimum price for OFS of Indian Overseas Bank (IOB) has been set at Rs 34 per share.
Shares of IOB closed at Rs 36.57 on BSE on Tuesday, down 1.08 per cent. IOB informed the stock market that the government will sell 38.51 crore shares equivalent to two percent stake under the original offer.
Apart from this, the option to sell 19.25 crore shares equivalent to additional one percent stake has also been kept under ‘Green Shoe’ option i.e. keeping it in case of additional bid. Overall this is three percent of the paid-up equity capital of the bank. At present, the government’s stake in Chennai-based Indian Overseas Bank is 94.61 percent.
The bank gave information
The bank also said that under OFS, 1.5 lakh shares (about 0.001 percent stake) can be reserved for eligible employees. Eligible employees will be able to apply for shares up to a maximum of Rs 5 lakh subject to the approval of the competent authority. This disinvestment is in line with the minimum public shareholding rules, under which it is mandatory for the general public to hold at least 25 percent stake in listed companies.
Capital market regulator SEBI has given exemption till August 2026 to Central Public Sector Undertakings and Public Sector Financial Institutions to comply with this rule. Apart from IOB, the government’s stake in Punjab and Sindh Bank (93.9 percent), UCO Bank (91 percent) and Central Bank of India (89.3 percent) is also more than the prescribed limit.
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