Govt to divest 3% in IOB

The government of India is selling a part of its shares in a bank called Indian Overseas Bank.

They are offering to sell 2% of the bank's shares, and they might sell an extra 1% if there are enough buyers.

People who want to buy these shares can place their bids on December 18.

The government currently owns 79.60% of the bank, and this sale will help them reduce their ownership.

The price of Indian Overseas Bank's shares was Rs 36.55 on December 16, but it dropped to Rs 34.70 on December 17 after the announcement.

The government expects to raise about ₹2,100 crore from this sale.

The stock fell sharply because the proposed discount triggered concerns over near-term price pressure and potential dilution.

The government's move is part of its broader strategy to gradually reduce its stake in public sector banks while improving liquidity and widening public shareholding.