Shares of Indian Overseas Bank Ltd. fell over 4.5% on Wednesday, December 17, after the government launched an Offer For Sale (OFS) to pare some stake in the lender.The OFS has opened for non-retail investors today, and will open for retail investors on Thursday, December 18.
This is the third straight day of losses for the state-run lender.
The government plans to sell up to 2% of IOB’s outstanding equity through the Offer for Sale, with a greenshoe option of an additional 1%.
Floor price of the OFS has been fixed as ₹34 per share, which was a 4.4% discount to the stock’s closing price on Tuesday.The floor price is 16% lower than the ₹40.57 level, which is the rate at which Indian Overseas Bank had issued shares to eligible investors as part of its Qualified Institutional Placement (QIP).
This is the third straight day of losses for the state-run lender.
The government plans to sell up to 2% of IOB’s outstanding equity through the Offer for Sale, with a greenshoe option of an additional 1%.
Floor price of the OFS has been fixed as ₹34 per share, which was a 4.4% discount to the stock’s closing price on Tuesday.The floor price is 16% lower than the ₹40.57 level, which is the rate at which Indian Overseas Bank had issued shares to eligible investors as part of its Qualified Institutional Placement (QIP).
Indian Overseas Bank had raised ₹1,436 crore in March this year, by issuing 35.41 crore shares to eligible buyers. LIC was issued 34.8% of the overall QIP shares, followed by IIFL Finance, who was issued nearly 14% of the shares. SBI Pension Fund, and LIC Pension Fund were also issued 7% each of the QIP share offering.
As of the September quarter, the government still owns over 94% stake in Indian Overseas Bank.
Shares of Indian Overseas Bank are trading 4.3% lower on Wednesday at ₹34.99. The stock is down nearly 60% from its February 2024 peak of ₹83.8. The stock is down 32% so far in 2025, which will be the first year of negative returns for the stock after 2020.
