IOB: SEBI APPROVES ESPS ISSUE OF 10 CR SHARES

IOB: SEBI APPROVES ESPS ISSUE OF 10 CR SHARES FOR MPS COMPLIANCE

• SEBI letter dated 19.10.2026 approved issuance of up to 10 Cr fresh equity shares directly to eligible bank employees under an Employee Stock Purchase Scheme (ESPS) • The ESPS route is being used under SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021, as a permissible mechanism to help meet Minimum Public Shareholding (MPS) requirements under Rule 19A of SCRR, 1957 • SEBI approval is specific to the present case and shall not be treated as a precedent • Issuance remains subject to compliance with SBEB Regulations and other applicable regulatory requirements • Bank disclosed the approval to BSE (532388) and NSE (IOB) under Regulation 30 of LODR Impact: Positive — The ESPS route provides IOB a mechanism to progress toward MPS compliance while broadening employee ownership. However, issuance of up to 10 Cr fresh shares will result in some equity dilution.