IOB raises Rs 1,436 crore through share placement

Indian Overseas Bank (IOB) has successfully raised Rs 1,436 crore through a qualified institutional placement (QIP). This was confirmed by the bank's Managing Director and CEO, Ajay Kumar Srivastava. The QIP saw over 62% of shares allotted to major investors including LIC, IIFL, SBI Pension Fund Scheme, and LIC Pension Fund Scheme. On Monday, IOB's committee approved the issue of 35.4 million equity shares at a price of Rs 40.57 each. This increase will raise the bank's paid-up equity share capital from Rs 189 billion to Rs 192 billion. LIC received more than 12.3 crore shares, which amounts to 34.8% of the total shares issued in the QIP. IIFL Finance followed with 4.9 crore shares, while both SBI and LIC Pension Fund Schemes were allotted nearly 2.5 crore shares each. IOB initiated this QIP process to raise Rs 2,000 crore to reduce the government's shareholding, which is currently at 96.4%. This adjustment aligns with SEBI regulations requiring listed companies to maintain a minimum public shareholding of 25%. The QIP's base size was Rs 1,000 crore, with the possibility of raising an additional Rs 1,000 crore through a greenshoe option. Srivastava stated that this move will improve the bank's Capital to Risk-Weighted Asset Ratio (CRAR) from 16.97% to over 18%. Looking ahead, IOB plans to launch another QIP in the next fiscal year. The bank's board will determine the amount to be raised in this future placement.