Public lender Indian Overseas Bank shares slipped in the opening trade on March 25, after the bank announced the closure of its Qualified Institutional Placement (QIP) after raising Rs 1,436 crore.
The bank's directors approved the issue price for 35,41,77,539 equity shares to be allotted to eligible QIBs at a price of Rs 40.57 per equity share. Earlier, the bank had approved a QIP to the tune of Rs 2,000 crore.
At 9.27 am, shares of Indian Overseas Bank were quoting Rs 44.36 on the NSE, lower by 0.3 percent after erasing all opening gains.
Shares were allocated to eligible investors at Rs 40.57 per share, reflecting a 5 percent discount to the QIP floor price of Rs 42.7 and a 9 percent discount to Monday’s closing price.
Life Insurance Corporation of India (LIC) was the largest allottee in the Qualified Institutions Placement (QIP) for Indian Overseas Bank, securing 12.32 crore equity shares, which accounts for 34.80 percent of the total shares issued at an issue price of Rs 40.57 per share.
Among other major allottees, IIFL Finance Limited was allotted 4.92 crore shares (13.92 percent), while SBI Pension Fund Scheme and LIC Pension Fund Scheme each received 2.46 crore shares (6.96 percent). However, no foreign institutional investors bought more than five percent of the QIP shares available on offer.
In 2025, the government had approved fund-raising plans of up to Rs 10,000 crore for five PSBs through QIP, and additional stake sales via OFS. The government approval was for qualified institutional placement Rs 2,000 crore each, and offer for sale (OFS) of five banks -- Indian Overseas Bank, Bank of Maharashtra, Punjab & Sind Bank, UCO Bank and Central Bank of India.
This QIP was also completed in order to reduce the government's shareholding in the bank. Currently, the central government holds a 96.38 percent stake in Indian Overseas Bank, according to its investor presentation. Indian Overseas Bank shared that the QIP was expected to reduce government of India’s stake in the bank of around 2-2.5 percent.
