The government of India is all set to divest its 3% stake in Indian Overseas Bank (IOB) through an Offer for Sale (OFS) commencing on December 17, 2025. The government of India has proposed to offload the shares at a floor price of Rs 34 per piece. It has proposed to sell up to 38.51 crore shares representing 2% of total shareholding of the bank with an option to additionally sell 19.25 crore shares representing 1% of total shareholding of the bank.
The government’s decision 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%. The government currently holds 94.61% stake in the bank.
Indian Overseas Bank is a pioneer in many fields - Banking, Insurance and Industry with the twin objectives of specialising in foreign exchange business and overseas banking.
