The OFS will open to retail investors on Thursday, December 18, with the government retaining an option to sell an additional 1% stake, or 19,25,65,898 shares, through a green shoe option through a separately designated window.
Floor Price Rs. 34 per equity share has been fixed and the offer will take place during trading hours and orders can be placed on BSE and NSE. At the floor price, the OFS size is Rs. 1,964 crores is over. The floor price on NSE was Rs. 36.55 at a discount of 7% from today’s closing price.
The lender reported the development after market hours on Tuesday and IOB shares fell more than 1% today.
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As per OFS guidelines, allocations will be made at or above the floor price on multiple clearing prices on a price priority basis, the filing to the exchanges said. However, retail investors will have the option to bid at or above the cut-off price and for whom the final allotment price may be less than the floor price due to retail discount.
The offer broker is Goldman Sachs (India) Securities Pvt.
Shares of IOB have fallen 34% in the past one year, lagging the market. The share lags the sectoral benchmark Nifty PSU Bank which has returned 16% in the last 12 months. Meanwhile the broader Nifty index rose 5%.
According to Trendlyne data, the stock is currently trading at Rs. 39.1 and Rs. It is trading below its 50-day and 200-day simple moving averages (SMA) of 39. It has also traded with very high volatility with a 1-year beta hovering near the 1.3 mark.
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