IOB stake sale: Govt pares stake via OFS; holding drops to 92.44%

Government holding in Indian Overseas Bank (IOB) has declined to 92.44 per cent following the completion of the offer-for-sale (OFS), with the Centre diluting a 2.17 per cent stake in the state-owned lender, the bank said in a regulatory filing on Saturday, PTI reported.Prior to the stake sale, the government held 94.61 per cent equity in the Chennai-based bank.The government had, on December 16, proposed to sell up to 38.51 crore shares, representing a 2 per cent base offer, with an option to additionally sell 19.25 crore shares, or 1 per cent of the bank’s total issued and paid-up equity capital, under the green-shoe option.According to the Department of Investment and Public Asset Management (DIPAM), demand was received for more than 41 crore shares against the base offer of about 34.66 crore shares, prompting the government to exercise the green-shoe option. However, the additional option was subscribed to only to the extent of 0.17 per cent.With the OFS closing on December 18 and the partial exercise of the green-shoe option, the government’s stake stood reduced by 2.17 percentage points to 92.44 per cent.The stake sale was undertaken in line with the Securities Contracts (Regulation) Rules prescribed by Sebi, which require all listed companies, including public sector entities, to maintain a minimum public shareholding of 25 per cent. Sebi has granted forbearance to central public sector enterprises and public sector financial institutions until August 2026 to meet this requirement.Apart from IOB, the government’s shareholding remains above the minimum public float threshold in Punjab & Sind Bank (93.9 per cent), UCO Bank (91 per cent) and Central Bank of India (89.3 per cent).