Indian Overseas Bank launches QIP to raise ₹2,000 crore

Indian Overseas Bank (IOB) has launched a plan to raise Rs 2,000 crore through a qualified institutional placement (QIP). This move aims to reduce the government's stake in the bank. Currently, the Indian government owns 96% of IOB. The Securities and Exchange Board of India (SEBI) requires listed companies to maintain at least 25% public shareholding. This is IOB's first attempt to raise money from the market in ten years. IOB's Managing Director and CEO, Ajay Kumar Srivastava, stated that the government’s shareholding could decrease by 3% to 4%. The QIP will be open to qualified institutional buyers (QIB) for three days, ending on Monday. The offer price has been set at Rs 42.7 per equity share, with a possible discount of up to 5%. In addition to the QIP, IOB's board has approved the issuance of long-term infrastructure bonds worth Rs 10,000 crore. These bonds will be issued over the current or next financial year, depending on funding needs for infrastructure and affordable housing, Srivastava noted.