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IOB Shares Tumble as Govt Plans 3% Stake Sale
17 Dec
Summary
- Government plans to sell 3% stake in Indian Overseas Bank via OFS.
- The offer for sale has a floor price of Rs 34 per share.
- Indian Overseas Bank's net profit rose 57.80% in Q2 FY26.
Indian Overseas Bank experienced a notable drop in its stock value, closing at Rs 34.32, a 6.15% decrease, following the government's announcement to divest a 3% stake. This strategic sale is being executed through an Offer for Sale (OFS), with a predetermined floor price of Rs 34 per share.
The government intends to sell approximately 38.51 crore shares, representing 2% of its holdings, with the option to increase this to 3% if the offer is oversubscribed. The OFS commenced on December 17, 2025, for non-retail investors and opened for retail investors, employees, and carry-forward bids on December 18, 2025. As of the end of Day 1, the offer saw substantial interest, subscribed at 115.25% for the non-retail portion.
This divestment comes as Indian Overseas Bank demonstrates strong financial performance, having reported a 57.80% surge in net profit to Rs 1,226.42 crore for the second quarter of FY26. The bank's total income also saw an increase of 8.60% during the same period, indicating a robust operational standing.
