The government’s stake in public sector Indian Overseas Bank (IOB) has come down by 2.17 percent to 92.44 percent after the offer-for-sale (OFS). The government had brought OFS on December 16, 2025 with a base offer size of 38.51 crore (38,51,31,796) shares. There was also an option to sell an additional 19.25 crore (19,25,65,898) shares and it was exercised. OFS closed on 18 December.
The green-shoe option was subscribed 0.17 per cent. The government’s stake in IOB came down to 92.44 per cent after the close of OFS by reducing the stake by 2.17 per cent, the bank said in a regulatory filing on Saturday. Earlier, the Government of India had 94.61 percent stake in this bank.
Why did the government sell its stake?
Capital market regulator SEBI has a rule that the minimum public shareholding in all listed companies should be 25 percent. Whether the company is government or private. However, SEBI has given exemption to companies under the central government and government financial institutions till August 2026. Apart from Indian Overseas Bank, the government’s stake in Punjab and Sindh Bank, UCO Bank and Central Bank of India also exceeds the minimum public shareholding threshold. The government holds 93.9 percent stake in Punjab and Sindh Bank, 91 percent stake in UCO Bank and 89.3 percent stake in Central Bank of India.
IOB shares down 36 percent in a year
Shares of Indian Overseas Bank closed at Rs 34.01 on BSE on Friday, December 19. The market cap of the bank is Rs 65,491.66 crore. The stock has fallen 15 percent in a month and 36 percent in a year. The face value of the share is Rs 10. The bank’s revenue on standalone basis in the July-September 2025 quarter stood at Rs 7,848.79 crore. Meanwhile, net profit was recorded at Rs 1,226.42 crore. Revenue during FY2025 was Rs 28,131 crore and net profit was Rs 3,334.71 crore.
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