The Government of India has announced to sell more stake in Indian Overseas Bank. Earlier, the Central Government planned to divest up to 3% stake in Indian Overseas Bank (IOB) through an offer for sale (OFS). OFS opened on Wednesday, December 17. The government offloaded up to a 2% stake, or 38,51,31,796 equity shares, on Wednesday through the non-retail window. The broker to the offer was Goldman Sachs (India) Securities Private Limited.
Today, the Government of India has announced that it will sell up to 2.395% of its stake in Indian Overseas Bank (IOB) through an Offer for Sale (OFS) on the stock exchanges. The information was issued by the Department of Financial Services (DFS) under the Ministry of Finance in a letter dated December 17, 2025, addressed to BSE and NSE.
Base Offer + Partial Oversubscription
Earlier, the government had notified that it would sell 38,51,31,796 shares (2% stake) as the Base Offer. Now, the government has decided to exercise the Oversubscription Option partially. It will sell an additional 7,60,94,197 shares (0.395% stake). This takes the total sale to 46,12,25,993 equity shares, representing 2.395% of IOB’s paid-up share capital. The original Oversubscription Option allowed for up to 1% more, but the government has chosen to use only 0.395% of it.
Retail Quota and Employee Reservation
Out of the total shares being offered:
- 10% of the Offer (4,61,22,600 shares) will be reserved for retail investors on December 18, 2025 (T+1 day).
- 1,50,000 shares (0.001% of total equity) will be offered to IOB employees.
OFS Timeline
- December 17, 2025 (T Day): Non-retail investors can bid.
- December 18, 2025 (T+1 Day): Retail investors, employees and carry-forward bids from non-retail investors can participate.
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