Description

NSE circular regarding the proposed Offer for Sale of up to 38.51 crore equity shares of Indian Overseas Bank on December 17-18, 2025, with floor price of Rs. 34 per share.

Summary

The National Stock Exchange has announced a proposed Offer for Sale (OFS) of Indian Overseas Bank equity shares scheduled for December 17-18, 2025. The base offer size is up to 38.51 crore equity shares with an oversubscription option of up to 19.26 crore shares and an additional employee option of up to 1.5 lakh shares. The floor price is set at Rs. 34 per share with a market lot of 1 equity share. The OFS will be conducted through the NSE eOFS platform following the interoperability framework among clearing corporations.

Key Points

  • Base offer size: Up to 38,51,31,796 equity shares (face value Rs. 10 each)
  • Oversubscription option: Up to 19,25,65,898 equity shares
  • Employee option: Up to 1,50,000 equity shares
  • Floor price: Rs. 34 per share
  • Market lot: 1 equity share
  • OFS dates: December 17, 2025 and December 18, 2025
  • Three bidding categories: IS (non-retail), RS (retail - bid value ≤ Rs 2 lakh), ES (employee - bid value ≤ Rs 5 lakh)
  • ISIN: INE565A01014
  • Seller to notify oversubscription exercise decision by 5:00 PM on December 17, 2025
  • All eligible Capital Market segment trading members can participate via eOFS platform

Regulatory Changes

The OFS will be conducted in accordance with the implementation of Interoperability among Clearing Corporations as per Exchange circular NSE/CMTR/62927 dated July 12, 2024. This represents the continued application of the interoperability framework for major offer for sale transactions.

Compliance Requirements

  • UCC Compliance: Members must ensure compliant Unique Client Codes (UCC) for self (PRO) and clients are updated in the Unique Client Identification (UCI) system one day prior to the OFS bidding session
  • Timing Restriction: UCCs updated or becoming compliant on the day of OFS bidding will not be permitted to participate; only UCCs identified as compliant by 22:00 hrs on the previous day will be allowed
  • Admin User ID: Members without admin user IDs must provide details on ENIT portal (https://enit.nseindia.com/MemberPortal/) via path: ENIT-NEW-TRADE→Membership→Enablement→eOFS
  • Request Processing: Requests processed at 11:00 AM, 2:00 PM, and 3:00 PM intervals; requests after 3:00 PM processed next day by 8:45 AM
  • Single Request Rule: Only one admin user creation request allowed; cannot be modified once raised
  • Collateral Sufficiency: Members must ensure sufficient collaterals before carry forward of orders on T+1 day; rejected orders cannot be placed again
  • User Limits: Members to refer Annexure 3 of circular NSE/CMTR/43529 dated February 13, 2020 for features and limits setting

Important Dates

  • Circular Date: December 16, 2025
  • OFS Bidding Days: December 17, 2025 and December 18, 2025
  • Oversubscription Decision Deadline: By 5:00 PM on December 17, 2025
  • UCC Compliance Cutoff: 22:00 hrs on the day prior to bidding session

Impact Assessment

Market Impact: This is a significant government disinvestment initiative involving a public sector bank with substantial share volume. The base offer of 38.51 crore shares plus potential oversubscription represents a major liquidity event in the banking sector.

Operational Impact: Trading members must ensure technical and operational readiness including eOFS platform access, admin user ID creation, UCC compliance, and adequate collateral provisions. The strict UCC compliance timeline (cutoff at 22:00 hrs previous day) requires advance planning to enable client participation.

Investor Categories: The three-tier structure (non-retail, retail ≤ Rs 2 lakh, employee ≤ Rs 5 lakh) provides differentiated access across investor segments, with the low floor price of Rs. 34 and market lot of 1 share enhancing retail accessibility.

Technical Requirements: Members need to access the eOFS platform at https://eofs.nseindia.com and may refer to the latest eOFS WEB API documentation. Helpdesk support available at toll-free number 1800 266 00 50 (Option 1) or email msm@nse.co.in.

Impact Justification

Major government disinvestment of public sector bank with significant share offering through OFS mechanism affecting trading members and investors