Govt to divest up to 3% stake in IOB via Offer for Sale beginning today

New Delhi: The government will divest up to 3 per cent stake in state-owned Indian Overseas Bank (IOB) through an Offer for Sale (OFS) beginning Wednesday, a move expected to raise around Rs 2,100 crore at current market prices.

The OFS will comprise a base offer of 2 per cent, or 38.51 crore shares, with an additional 1 per cent, or 19.25 crore shares, available under a green shoe option, IOB said in a regulatory filing. The issue will open for non-retail investors on Wednesday, while retail investors can place bids on Thursday.

IOB shares closed 1.08 per cent lower at Rs 36.57 on the BSE on Tuesday. The government currently holds a 94.61 per cent stake in the Chennai-based lender.

Up to 1.5 lakh shares, equivalent to 0.001 per cent of equity, may be reserved for eligible employees, who can apply for shares worth up to Rs 5 lakh, subject to approvals. The divestment aligns with Sebi’s minimum public shareholding norms of 25 per cent for listed firms.