New Delhi, 17 December (H.S.): The government-initiated Offer for Sale (OFS) for public sector lender Indian Overseas Bank (IOB) opened on Wednesday for non-retail investors at a minimum price of ₹34 per share, aiming to divest up to 3% equity and raise approximately ₹1,960 crore.

IOB shares tumbled 5.4% in early trade on the Bombay Stock Exchange (BSE), hitting an intraday low of ₹34.57, reflecting selling pressure following the OFS announcement. The stock had closed at ₹36.57 on Tuesday, down 1.08%.Non-retail bidding commenced today, with retail investors slated to participate from Thursday.

Department of Investment and Public Asset Management (DIPAM) Secretary confirmed the decision to offload up to 3% stake via OFS, with a base offer of 2% (38.51 crore shares) and a green shoe option for an additional 1% (19.25 crore shares), constituting 3% of the bank's paid-up equity capital.

Approximately 1.5 lakh shares (0.001% stake) are reserved for eligible employees, who may apply for up to ₹5 lakh worth subject to authority approval, aligning with minimum public shareholding norms mandating 25% public float for listed firms—SEBI's August 2026 deadline notwithstanding.Currently, the government's holding stands at 94.61% in the Chennai-headquartered bank.

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Hindusthan Samachar / Jun Sarkar