Govt holding in IOB declines to 92.44 pc after share sale

New Delhi, Dec 20 (PTI) Government holding in state-owned Indian Overseas Bank (IOB) has declined by 2.17 per cent to 92.44 per cent following the offer-for-sale, the state-run bank said on Saturday.

The government on December 16 had proposed 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.

"Against about 34.66 cr shares on offer, demand was received for more than 41 crore shares. Government has decided to exercise the green shoe option," Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla had said in a post on X.

However, the green-shoe option was subscribed to at 0.17 per cent.

With the stake dilution of 2.17 per cent following the OFS closure on December 18, the government holding in IOB came down to 92.44 per cent, the bank said in a regulatory filing on Saturday.

Prior to this, the government of India held 94.61 per cent in the Chennai-based bank.

The OFS was done 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 markets 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). PTI DP MR