The government owns a large part of Indian Overseas Bank. Now, it plans to sell up to 3% of its shares in the bank to the public. This sale will happen through a method called an Offer for Sale (OFS), starting on December 17.
A 2% stake will be sold first on Wednesday, December 17, mainly for large institutional investors. Retail (small) investors can buy shares on Thursday, December 18. The government may sell another 1% stake later if demand is strong (this is called a green shoe option).
The government has set a minimum selling price (called the floor price) of ₹34 per share. The price is about 7% lower than IOB’s last closing price of ₹36.55, meaning buyers can purchase the shares at a small discount compared to the market price. At this price, the total sale is worth around ₹1,964 crore. Shares can be bought on BSE and NSE during normal trading hours.
IOB stock has not performed well compared to the overall market.Over the last one year, the share price has fallen by 34%.nDuring the same time, PSU bank stocks as a group went up by 16%. The stock has been underperforming and volatile, so investors should be cautious
