MONEY
IOB lines up Rs 5,000-crore mop-up via QIPs, FPOs and rights issues in FY27
- IBJ Bureau
- Jun 14, 2026
State-run Indian Overseas Bank (IOB) plans to raise up to Rs 5,000 crore in equity capital during FY27 through a mix of qualified institutional placements (QIPs), follow-on public offers (FPOs), rights issues, preferential allotments and employee stock schemes.
The proposal forms a part of a special resolution included in the notice for the bank’s 26th annual general meeting scheduled on July 7.
According to the notice, the capital mop-up could be undertaken through one or more tranches and may include preferential allotments to institutional investors, such as Life Insurance Corporation of India (LIC), mutual funds, companies and other qualified institutional buyers.
As of March 31, 2026, the Central government had held a 92.44 per cent stake in IOB. In December 2025, the Centre had diluted 2.17 per cent of its holding through an offer-for-sale (OFS), raising around Rs 2,000 crore.
The public sector lender has also sought shareholders’ approval for extension of Managing Director and Chief Executive Officer Ajay Kumar Srivastava’s tenure as whole-time director until October 8, 2027.
His previous notified term had ended on December 31, 2025.
Last September, the Centre had extended Mr Srivastava’s tenure as MD and CEO for a 21-month period with effect from January 1, 2026.
Mr Srivastava has been at the helm of the bank since January 1, 2023.
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