The Government of India has announced an Offer for Sale (OFS) of its stake in Indian Overseas Bank, aiming to raise up to Rs 1,964.1 crore by divesting 7.6 percent equity in the public sector lender.
According to the official notice, the OFS will be conducted at a floor price of Rs 34 per share, which represents a discount of around 7.6 percent to Indian Overseas Bank’s last closing price of Rs 36.57.
The total OFS size comprises 57.77 crore shares, of which the base offer includes 38.51 crore shares worth Rs 1,309.4 crore, while the green shoe option allows the government to sell an additional 19.26 crore shares, valued at Rs 654.7 crore, depending on demand.
OFS dates and investor categories
The OFS will be conducted over two trading days.
Non-retail investors can place bids on December 17, 2025, while retail investors will be allowed to participate on December 18, 2025.
Retail investors will have 10 percent of the offer reserved, while mutual funds and insurance companies have been allocated a 25 percent reservation within the non-retail category.
The government, which is selling the shares as part of its disinvestment programme, will remain the promoter of Indian Overseas Bank after the transaction.
Key OFS highlights at a glance
- Seller: Government of India
- Floor price: Rs 34 per share
- Total issue size: Rs 1,964.1 crore
- Base issue: Rs 1,309.4 crore
- Green shoe option: Rs 654.7 crore
- Shares on offer: 57.77 crore
- Non-retail bidding: December 17, 2025
- Retail bidding: December 18, 2025
- Retail reservation: 10 percent
- MF & Insurance reservation: 25 percent
Indian Overseas Bank shares are expected to remain in focus during the week as investors track subscription levels and institutional participation in the OFS.
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