Govt to Sell 76.1 Million Shares in Indian Overseas Bank OFS

The OFS, launched to reduce the government’s stake and improve market liquidity, initially offered a smaller tranche but was expanded after robust subscription levels. Market analysts note that the oversubscription reflects investor confidence in IOB’s turnaround story, supported by improved asset quality, profitability, and capital adequacy. The sale is expected to raise significant funds while enhancing the bank’s free float, thereby strengthening its market profile.  

Notable updates  
• Government to sell up to 76.1 million shares in IOB via OFS  
• Oversubscription option exercised following strong investor demand  
• Aim: reduce government stake, improve liquidity, and support disinvestment targets  
• IOB has shown improved asset quality and profitability in recent quarters  
• Enhanced free float expected to boost market visibility and investor participation  

Major takeaway  
The oversubscription in IOB’s OFS highlights investor confidence in the bank’s recovery and reflects the government’s commitment to its disinvestment roadmap.  

Sources: Reuters, Economic Times, Business Standard, Moneycontrol