State-run lender Indian Overseas Bank Ltd. has launched a Qualified Institutional Placement (QIP) to raise up to ₹2,000 crore.The base size of the issue is worth ₹1,000 crore and the bank will have the option to upsize the issue by another ₹1,000 crore.
Using the upsize option, the QIP will entail a total of 49.28 crore shares.
Indian Overseas Bank has fixed the floor price of the QIP at ₹42.7 per share, which is a 2.5% discount to Wednesday’s closing price of ₹43.78.Indicative issue price of the QIP is said to be ₹40.57, which is a discount of 7.3% to Wednesday’s closing and a 5% discount to the floor price.
Elara Capital is the book running lead manager for the QIP, along with other institutions like IDBI Capital Markets, Systematix Corporate Services and Emkay Global Financial Services.CNBC-TV18 had reported in January this year that the government has approved a QIP plan worth ₹10,000 crore for five state-run lenders, including Indian Overseas Bank, UCO Bank, Punjab & Sind Bank, Central Bank of India and Bank of Maharashtra, to bring down their shareholding in these lenders in compliance with the Minimum shareholding norms.
Using the upsize option, the QIP will entail a total of 49.28 crore shares.
Indian Overseas Bank has fixed the floor price of the QIP at ₹42.7 per share, which is a 2.5% discount to Wednesday’s closing price of ₹43.78.Indicative issue price of the QIP is said to be ₹40.57, which is a discount of 7.3% to Wednesday’s closing and a 5% discount to the floor price.
Elara Capital is the book running lead manager for the QIP, along with other institutions like IDBI Capital Markets, Systematix Corporate Services and Emkay Global Financial Services.CNBC-TV18 had reported in January this year that the government has approved a QIP plan worth ₹10,000 crore for five state-run lenders, including Indian Overseas Bank, UCO Bank, Punjab & Sind Bank, Central Bank of India and Bank of Maharashtra, to bring down their shareholding in these lenders in compliance with the Minimum shareholding norms.
Sources had also told CNBC-TV18 back in January that the Department of Disinvestment and Public Asset Management (DIPAM) has also received a mandate to sell stake in these above mentioned lenders through the Offer For Sale (OFS) route.
The government is trying to meet the 25% minimum public shareholding norms within these PSU Bank by August 2026.
At the end of the December quarter, the government owned a 96.38% stake in Indian Overseas Bank.
Shares of Indian Overseas Bank ended 3.2% higher on Wednesday at ₹43.78. The stock is down 43% from its recent 52-week high of ₹75. Shares have declined 15% so far in 2025.
Sapna Das.
First Published: Mar 20, 2025 6:30 am IS
