Indian Overseas Bank Stock Plunges as OFS Floor Price Undercuts QIP by 16%

• Indian Overseas Bank shares fell over 4.5% on Wednesday after the government launched an Offer For Sale (OFS) to divest a stake.
• The OFS floor price is fixed at ₹34 per share, a 4.4% discount to Tuesday's closing price.
• This floor price is 16% lower than the ₹40.57 per share at which IOB issued shares in its Qualified Institutional Placement (QIP).
• The government plans to sell up to 2% of IOB's equity, with an additional 1% greenshoe option.
• IOB's stock is down 32% in 2025, marking its first negative return year since 2020, and nearly 60% from its February 2024 peak.

Why It Matters: IOB stock drops as OFS floor price is significantly lower than its recent QIP issue price.