Indian Overseas Bank (NSEI:IOB) (IOB) is planning to raise up to INR 50,000 million in FY25 in a bid to meet SEBI?s minimum public shareholding (MPS) norm. As per the Securities Contracts (Regulation) Rules, 2018, every listed company needs to have at least 25% MPS. As at March-end 2024, Government of India?s shareholding in the Chennai-headquartered public sector bank stood at 96.38%.

The bank, in a regulatory filing, said it plans to raise equity capital up to INR 50,000 million 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 INR 10,000 million, 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.