Public Sector Bank Achieves Significant Capital Raise

Public sector Indian Overseas Bank (IOB) has successfully raised Rs 1,436 crore through a qualified institutional placement (QIP), marking a significant milestone in its capital raising efforts. The bank allocated more than 62% of the total shares to prominent investors including LIC, IIFL, SBI Pension Fund Scheme, and LIC Pension Fund Scheme.

Details of the QIP Allocation

The committee of directors approved the allotment of 35.4 equity shares to eligible qualified institutional buyers at an issue price of Rs 40.57 per share. This strategic move increases the bank's paid-up equity share capital from Rs 189 billion to Rs 192 billion, comprising 19,25,65,89,795 equity shares of Rs 10 each.

Investor Participation Highlights

LIC emerged as the largest investor, securing over 12.3 crore shares, which accounts for 34.8% of the total equity share. IIFL Finance followed with 4.9 crore shares at 13.9%, while SBI Pension Fund Scheme and LIC Pension Fund Scheme were each allotted nearly 2.5 crore shares.

Future Plans and Strategic Goals

IOB's MD & CEO Ajay Kumar Srivastava revealed plans for another QIP in the next fiscal year (FY26), pending board approval. This initiative aims to further reduce the Centre's shareholding in the bank and comply with SEBI's minimum public shareholding norms. The recent capital raise is expected to enhance the bank's Capital to Risk-Weighted Asset Ratio (CRAR) to over 18%, up from the current 16.97%.