Government to divest up to 3% stake in Indian Overseas Bank, shares tank 5%Government to divest up to 3% stake in Indian Overseas Bank, shares tank 5%

Introduction

leading public sector lender faces government stake divestment through an Offer for Sale to meet SEBI minimum public shareholding norms at a specified floor price.

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Share price movement of Indian Overseas Bank

On December 17, 2025, Indian Overseas Bank opened at ₹36.10, down 1.28% from its previous close of ₹36.57. The stock hit a high of ₹36.10 and a low of ₹34.57. By 1:29 PM, it traded at ₹34.77, a 4.92% decline, with a market cap of ₹66,955.16 crore.

Government Announces IOB Stake Sale

The Government of India announced an Offer for Sale to divest up to 3% stake in Indian Overseas Bank through the stock exchanges on Tuesday as officially disclosed notice.

The OFS floor price is set at Rs 34 per share, reflecting about 7.6 percent discount to Indian Overseas Bank previous closing price of Rs 36.57 on the exchanges Tuesday.

The stake sale aims to meet SEBI minimum public shareholding norms, while the government holding about 94.6 percent will remain promoter after the transaction completion as per official disclosure notice.

Stock performance of Indian Overseas Bank for Period of 1 week, 6 months, and 1 year

Indian Overseas Bank Ltd delivered a 0.19% decline over the past week, slipped 1.75% in the past six months, and fell 33.7% over the past year.

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Shareholding pattern of Indian Overseas Bank

Particulars	Sep 2025	Jun 2025	Mar 2025
Promoter	94.60%	94.60%	94.60%
FII	0.30%	0.10%	0.20%
DII	2.30%	2.40%	2.60%
Public	2.80%	2.90%	2.60%

About Indian Overseas Bank

Indian Overseas Bank (NSE: IOB) was founded in 1937 by Chidambaram Chettyar. It is a public sector bank nationalized in 1969, offering banking and financial services across India.

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Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.

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