Description

Schedule of activities for the Offer for Sale of Indian Overseas Bank shares on December 17-18, 2025, including bidding timings, allocation methodology, and investor categories.

Summary

BSE has announced the detailed schedule for the Offer for Sale (OFS) of Indian Overseas Bank (IOB) shares scheduled for December 17-18, 2025. The OFS consists of a base offer size of 38,51,31,796 shares with an oversubscription option of 19,25,65,898 additional shares. The floor price is set at Rs. 34.00 per share with a face value of Rs. 10. Institutional and non-institutional investors will bid on December 17, 2025 (T Day), while retail investors and employees will bid on December 18, 2025 (T+1 Day).

Key Points

  • Security: Indian Overseas Bank (IOB), Scrip Code: 532388, ISIN: INE565A01014
  • Total offer size: 38,51,31,796 shares (base) + 19,25,65,898 shares (oversubscription option) = 57,76,97,694 shares
  • Floor price: Rs. 34.00 per share, Face value: Rs. 10, Market lot: 1 share, Tick size: Rs. 0.01
  • Retail reservation: 10% of issue size (3,85,13,180 base + 1,92,56,590 oversubscription = 5,77,69,770 shares)
  • Non-retail offer: 34,66,18,616 base + 17,33,09,308 oversubscription = 51,99,27,924 shares
  • Employee quota: 1,50,000 shares
  • Allocation methodology: Price Priority Method
  • Seller may exercise oversubscription option by 5 PM on December 17, 2025

Regulatory Changes

No regulatory changes are introduced. This circular provides operational guidelines for the scheduled OFS event in accordance with existing SEBI OFS regulations.

Compliance Requirements

For Trading Members and Custodian Members:

Margin Requirements by Investor Category:

  • Retail Investors (RI/RIC): Individual, HUF, NRI with bid value up to Rs. 2 lakhs - 100% upfront margin in cash and cash equivalents
  • Employees (EMP): Bid value up to Rs. 5 lakhs - 100% upfront margin in cash and cash equivalents
  • Non-Institutional Investors (NII): Retail investors with bid value above Rs. 2 lakhs - 100% upfront margin in cash
  • Institutional Investors (MF/IC/OTHS): Mutual Funds, Insurance Companies, Others (FII, FI, Banks) - 100% upfront margin in cash OR 0% margin option available

Bidding Categories:

  • MF: Mutual Fund
  • IC: Insurance Company
  • NII: Non Institutional Investors (Individual, HUF, Trust, Body Corporates, PMS)
  • OTHS: Others (FII, FI, Banks)
  • RI: Retail Investors
  • RIC: Retail Investor Category
  • EMP: Employees

Important Dates

December 17, 2025 (T Day) - Institutional/Non-Institutional Investors:

  • Bid entry period for IC/MF/OTH/NII: 9:15 AM to 3:30 PM
  • Bid modification and cancellation: 9:15 AM to 3:30 PM
  • Seller to intimate oversubscription exercise decision: By 5:00 PM

December 18, 2025 (T+1 Day) - Retail Investors/Employees:

  • Give up/Take up for institutional investors (0% margin bids only): Up to 7:30 AM
  • Bid entry period for RI/RIC/EMP: 9:15 AM to 3:30 PM
  • Bid modification and cancellation: 9:15 AM to 3:30 PM
  • Unallocated bidders from T Day can carry forward bids

December 19, 2025 (T+2 Day):

  • Give up/Take up for retail/employee categories: Up to 7:30 AM
  • Unallocated bidders from T+1 Day can carry forward bids

Settlement Dates:

  • T+1 settlement: For Retail Investors (RI/RIC) and Employees (EMP) bidding on T+1 Day
  • T+1 or T+2 settlement: For Institutional and Non-Institutional Investors depending on bid day
  • T+2 settlement: For Retail Investors (RI/RIC) and Employees (EMP) final settlement

Impact Assessment

Market Impact:

  • High volume offering: Total potential sale of 57.77 crore shares represents a significant divestment by the Government of India in a public sector bank
  • Price discovery: Floor price of Rs. 34 per share sets the minimum valuation benchmark
  • Liquidity: Large offer size will significantly impact IOB’s trading volumes and liquidity

Investor Impact:

  • Retail participation: 10% reservation ensures retail investor access with separate bidding day
  • Employee benefit: Dedicated quota of 1.5 lakh shares for employees
  • Institutional flexibility: 0% margin option available for institutional investors provides operational flexibility
  • Price priority allocation: Ensures efficient price discovery and fair allocation based on bid prices

Operational Impact:

  • Trading members must ensure system readiness for two-day bidding process
  • Separate handling required for different investor categories with distinct timelines
  • Margin collection and settlement processes differ by investor type
  • Carry-forward mechanism for unallocated bidders adds complexity to order management

Impact Justification

Major Offer for Sale event involving 38.51 crore shares of a public sector bank with specific bidding schedules and investor allocation requirements affecting all investor categories.