IOB OFS opens for subscription govt to offload up to 3 pc stake

New Delhi, Dec 17 (PTI) The Indian Overseas Bank's Offer-for-Sale (OFS) opened on Wednesday for non-retail investors at a floor price of Rs 34 per share.
     At the floor price, the government would mop up about Rs 1,960 crore by divesting its 3 per cent stake in the state-owned lender.
     The OFS will open for retail investors on Thursday, as per the prospectus of the share sale.
     The floor price for the Indian Overseas Bank (IOB) OFS has been set at Rs 34 per share, it said.
     Shares of 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 had said in a regulatory filing.
     The government currently holds a 94.61 per cent stake in the Chennai-based bank.
     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 set out in the OFS Guidelines, subject to approval from the competent authority.
     Eligible employees may apply for shares 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).

(This story has not been edited by THE WEEK and is auto-generated from PTI)