At about 11:40 am, the OFS was subscribed 2.29%, data from the Bombay Stock Exchange showed.
The floor price for the offer has been fixed at Rs 34 per equity share, with the sale scheduled to be conducted during market hours today. Investors can place bids on both the BSE and the NSE. At the floor price, the size of the offer works out to over Rs 1,964 crore. The floor price represents a discount of about 7% to Wednesday’s closing price of Rs 36.57 on the BSE.
Through the offer for sale, the Centre will divest up to a 3% stake in Indian Overseas Bank (IOB). Of this, the government intends to sell up to a 2% stake, or 38,51,31,796 equity shares, via the non-retail portion of the issue. For retail investors, the OFS will open on Thursday, December 18, with the government retaining the option to sell an additional 1% stake, or 19,25,65,898 shares, via a green shoe option through a separate designated window.
As per the exchange filing, shares will be allocated at or above the floor price on a price-priority basis and at multiple clearing prices, in line with OFS guidelines. Retail investors, however, will have the option to bid at or above the cut-off price, with the final allocation price potentially falling below the floor price after factoring in the applicable retail discount.
The company reported a 58% jump in net profit at Rs 1,226 crore in the second quarter of the fiscal as compared with Rs 777 crore in the year ago period. The lender’s asset quality improved further.
The bank set aside Rs 673 crore in the quarter as total provisions while it was Rs 1146 crore in the year-ago period. Provisions against bad loans were higher at Rs 121 crore against Rs 71 crore.IOB’s net interest margin for the quarter improved to 3.21% as compared with 3.08% in the year-ago period. The bank has reported lower cost of deposits in the quarter at 5.05% against 5.15% earlier, one of the reasons behind higher NIM.
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