IOB Shares Plunge 4% as Govt Sells 3% Stake via OFS

• Indian Overseas Bank (IOB) shares fell 4% to Rs 35.01 after the government announced a 3% stake sale via Offer For Sale (OFS).
• The OFS floor price is set at Rs 34 per share, representing a 7% discount to the previous day's closing price.
• The government aims to raise approximately Rs 2,000 crore by offloading up to 3% of its stake in IOB.
• This sale is intended to help IOB comply with SEBI's minimum public shareholding norm, with forbearance until August 2026.
• The OFS includes a 2% base offer and a 1% green shoe option, with a separate offer for eligible employees.

Why It Matters: Government's 3% IOB stake sale via OFS causes share drop, aims to raise Rs 2,000 crore.