IOB launches QIP to raise Rs 2,000 crore

CHENNAI: Indian Overseas Bank (IOB) on Thursday launched a qualified institutional placement (QIP) to raise Rs 2,000 crore. This will bring down the Centre's shareholding in the state-run bank.
Currently, the Union govt holds 96% share with the Chennai-headquartered bank. The Securities and Exchange Board of India (SEBI) has mandated that all the listed companies should maintain a minimum public shareholding (MPS) of 25%.
This is for the first time that the public sector bank is approaching the market to raise money in the past one decade, IOB MD & CEO Ajay Kumar Srivastava said. "We expect the govt's shareholding will reduce by 3%-4%," he told TOI.
The QIP will be available to qualified institutional buyers (QIB) for three days till Monday, excluding Saturday and Sunday. The floor price of the issue has been fixed at Rs 42.7 per equity share. The bank can offer a discount of up to 5% on the floor price.
Meanwhile, the IOB board has approved the issue of long-term infra bonds to the tune of Rs 10,000 crore. It will be in one or more tranches during the current year or subsequent financial year based on the requirement for financing/refinancing of infrastructure and affordable housing, the bank informed the stock exchange.
"We will be issuing the infra bonds during the next fiscal (FY26)," Srivastava added.