Archive · 18 Dec 2025
Government Exercises Green Shoe Option in IOB OFS
The government of India decided to sell more shares of Indian Overseas Bank (IOB) than originally planned because many investors wanted to buy them.
They started selling shares on December 17, 2025, to big investors and will sell more to regular people and employees on December 18, 2025.
The government owns most of the bank's shares and wants to sell some to meet rules that say companies must have at least 25% of their shares owned by the public.
The price for each share is Rs 34.
The government will sell a total of 46.12 crore shares, which is more than they originally planned because so many people wanted to buy them.
Government decided to exercise green shoe option to sell additional 7.61 crore shares of IOB due to high demand.
Initial OFS offer size was 38.51 crore shares (2% of paid-up equity) at Rs 34 per share.
Total offer size increased to 46.12 crore shares (2.395% of paid-up equity) after exercising the option.
Retail investors can bid on December 18, 2025, with 4.61 crore shares allocated for them.
1.5 lakh shares reserved for eligible employees, with a maximum investment limit of Rs 5,00,000.
- Who
- Government of India, Indian Overseas Bank (IOB)
- What
- Exercise of green shoe option to increase stake divestment in IOB through OFS
- When
- December 17-18, 2025
- Where
- India
- Why
- Overwhelming response from investors, to meet minimum public shareholding requirements
- Bank
- Indian Overseas Bank (IOB)
- OFS Date
- December 17, 2025 (non-retail), December 18, 2025 (retail)
- Floor Price
- Rs 34 per share
- Initial Offer Size
- 38.51 crore shares (2% of paid-up equity)
- Additional Shares
- 7.61 crore shares (0.395% of paid-up equity)
- Total Offer Size
- 46.12 crore shares (2.395% of paid-up equity)
- Retail Allocation
- 4.61 crore shares (10% of total offer)
- Employee Allocation
- 1.5 lakh shares (0.001% of paid-up equity)
- Government Stake
- 94.61%
