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Secondary Issues

IOB to raise Rs.5,000-Cr via share sale

Mint   Indian Overseas Bank  

State-owned Indian Overseas Bank (IOB) plans to raise INR 5,000-Cr through a qualified institutional placement (QIP) of shares in the second half of FY27. The proposed share sale is expected to dilute the central government’s 92.44% stake in the institution.The bank has eliminated approximately INR 20,000-Cr in accumulated losses, completing a balance-sheet restructuring that now qualifies it to declare dividends.The lender reported a net profit of INR 1,659 Cr for the June quarter, representing a 49.32% year-on-year increase. Net interest income grew by 34.3% to INR 3,688 Cr, while operating profit reached INR 2,693 Cr.

In Mar 2009, Indian Overseas Bank had attracted about $ 4 M from Affirma Capital.