Centre to divest up to 3% stake in Indian Overseas Bank; retail bidding on Dec 18

The Centre is set to divest up to a 3 per cent stake in the Indian Overseas Bank, with bidding for retail investors opening on December 18. "Offer for Sale in Indian Overseas Bank (IOB) opens tomorrow for non-retail investors," the Department of Investment and Public Asset Management (DIPAM) announced on Tuesday.

The government has offered to disinvest 2 per cent equity in the bank, with an additional 1 per cent as a green shoe option. 

Shares of IOB slipped 1.14 per cent to close at Rs 36.55 on Tuesday.

Earlier this month, the government divested a 6 per cent stake in Bank of Maharashtra. The proposed stake sale was aimed at bringing the lender closer to the mandated 25 per cent public shareholding requirement.

The Centre held a 79.60 per cent stake in the bank as of September 2025, and an offer for sale of up to 5% would bring its holding below 75 per cent.