Indian Overseas Bank (IOB) is planning to raise up to ₹5,000 crore in FY25 in a bid to meet SEBI’s minimum public shareholding (MPS) norm.
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As per the Securities Contracts (Regulation) Rules, 2018, every listed company needs to have at least 25 per cent MPS.
As at March-end 2024, Government of India’s shareholding in the Chennai-headquartered public sector bank stood at 96.38 per cent.
The bank, in a regulatory filing, said it plans to raise equity capital up to ₹5,000 crore from the public. This equity issuance will be by way of a follow-on public offer/rights issue/Qualified Institutional Placement/Employee Stock Purchase Scheme/preferential issue or any other mode or combination thereof, in one or more tranches.
The aforementioned equity issuance will be within a period of 12 months from the date of approval, after obtaining the necessary approval of the Indian government and the approval of shareholders through Annual General Meeting (AGM)/Extraordinary General Meeting (EGM).
IOB is also planning to raise tier-II capital by issuing BASEL III Compliant tier-II bonds up to a maximum extent of ₹1,000 crore, depending upon the requirement. This will be with or without greenshoe option, in one or more tranches, within a period of 12 months from the date of approval.