Indian Overseas Bank Receives $25.7M from Malaysia Subsidiary Liquidation

Indian Overseas Bank has received a significant interim distribution of USD 25,717,298.33 from the liquidation of its Malaysian subsidiary. The amount represents the bank's share from the Members Voluntary Liquidation (MVL) of India International Bank (Malaysia) Bhd, disclosed under Regulation 30 of SEBI (LODR) Regulations, 2015.

Joint Venture Structure

India International Bank (Malaysia) Bhd was established as a joint venture between three prominent Indian public sector banks. The ownership structure comprised Bank of Baroda, Indian Overseas Bank, and Union Bank of India, with Indian Overseas Bank holding a 35% stake in the Malaysian banking entity.

Liquidation Details

The interim distribution represents capital repatriation from the ongoing Members Voluntary Liquidation process of the Malaysian subsidiary. The following table summarizes the key details of the transaction:

Parameter	Details
Amount Received	USD 25,717,298.33
Distribution Type	Interim capital repatriation
IOB Stake	35%
Liquidation Process	Members Voluntary Liquidation (MVL)
Joint Venture Partners	Bank of Baroda, Union Bank of India

Regulatory Compliance

The bank has fulfilled its disclosure obligations by informing both major stock exchanges about this development. Indian Overseas Bank communicated the receipt of funds to the Department of Corporate Services at BSE Limited and the Vice President at National Stock Exchange Ltd, ensuring compliance with SEBI listing regulations.

Financial Impact

The interim distribution provides Indian Overseas Bank with substantial foreign currency inflows from its overseas investment. As the liquidation process continues, the bank may receive additional distributions based on the final settlement of the Malaysian entity's assets and liabilities, subject to the completion of the MVL proceedings.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.26%	-8.21%	-15.28%	-6.75%	-36.12%	+226.83%

The Government of India has successfully completed its divestment of Indian Overseas Bank shares through the Offer for Sale (OFS) mechanism, with the bank filing mandatory insider trading disclosures under SEBI regulations on December 19, 2025. The transaction involved the sale of 76.09 million additional equity shares representing 0.395% of the bank's total paid-up equity share capital, following the government's earlier decision to exercise the oversubscription option.

OFS Transaction Completion and Regulatory Filing

The bank has submitted Form C disclosure to both NSE and BSE under Regulation 7(2)(b) of SEBI (Prohibition of Insider Trading) Regulations, 2015, confirming the completion of the government's share sale transaction. The disclosure was signed by Ram Mohank, Compliance Officer of Indian Overseas Bank, and filed with reference number IRC/236/2025-26.

Transaction Parameter:	Details
Shares Sold:	76.09 million equity shares
Percentage of Capital:	0.395% of total paid-up equity
Transaction Mode:	Offer for Sale (OFS)
Filing Date:	December 19, 2025
Reference Number:	IRC/236/2025-26
Exchanges:	NSE (Primary), BSE (Secondary)

Government Divestment Structure

The completed transaction was part of the government's broader divestment strategy that included both base offer shares and the exercised oversubscription option. The Department of Financial Services, Ministry of Finance, acting through Director Jitendra Asati, executed the share sale as part of the structured OFS framework.

OFS Component:	Share Details
Base Offer:	385.13 million shares (2% of total equity)
Oversubscription Exercised:	76.09 million shares (0.395%)
Total Divestment:	461.22 million shares (2.395%)
Floor Price:	₹34.00 per share
Trading Period:	December 17-18, 2025

Regulatory Compliance and Documentation

The insider trading disclosure filing confirms the government's adherence to SEBI's regulatory framework for promoter share transactions. The Form C submission includes detailed information about the securities held before and after the transaction, with the government maintaining its promoter status while reducing its shareholding percentage through the strategic divestment.

Market Impact and Strategic Outcome

The successful completion of the OFS transaction demonstrates effective execution of the government's divestment plan for the public sector bank. The transaction enhances market liquidity for Indian Overseas Bank shares while supporting the government's broader financial sector reform objectives and helping meet minimum public shareholding requirements for the banking institution.