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:

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.

The Government of India has filed a comprehensive Regulation 29 disclosure with stock exchanges confirming the successful completion of its Indian Overseas Bank share divestment through the Offer for Sale mechanism. The transaction, conducted on December 17-18, 2025, involved the sale of 417.84 million equity shares, reducing the government's shareholding from 94.61% to 92.44% in the public sector bank.

Regulation 29 Filing and Transaction Details

The Department of Financial Services, Ministry of Finance, submitted the mandatory disclosure under Regulation 29(2) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, on December 19, 2025. The filing was signed by Director Jitendra Asati and addressed to the bank's board of directors along with BSE and NSE listing departments.

OFS Structure and Components

The offer comprised multiple components as outlined in the government's December 16, 2025 notice to stock exchanges. The base offer size included 385.13 million equity shares representing 2% of the bank's total paid-up equity share capital, with an oversubscription option of 192.57 million shares representing an additional 1%.

Shareholding Changes and Compliance

The disclosure reveals the government's shareholding position before and after the transaction, with detailed breakdowns of voting rights and share categories. Prior to the sale, the government held 1.82 billion shares carrying voting rights, representing 94.61% of the bank's total share capital.

Regulatory Framework and Guidelines

The transaction was conducted under comprehensive SEBI guidelines, including the master circular SEBI/HO/MRDPoD2/CIR/P/2024/00181 dated December 30, 2024, pertaining to offer for sale through stock exchange mechanism. The process also followed revised operational guidelines issued by both BSE (notice 20240701-19 dated July 1, 2024) and NSE (circular 93/2024 dated July 12, 2024).

The successful completion of this divestment transaction demonstrates the government's continued commitment to strategic stake reduction in public sector banks while maintaining regulatory compliance and market transparency through proper disclosure mechanisms.