The floor price has been fixed at Rs 34 per equity share and the offer will take place during trading hours and orders can be placed on the BSE and the NSE. At the floor price, the OFS size is worth over Rs 1,964 crore. The floor price is at a discount of 7% to today’s closing price of Rs 36.55 on the NSE.The lender informed about the development after trading hours on Tuesday and the IOB share fell more than 1% today.
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The allocation will be made at or above the floor price on a price priority basis and at multiple clearing prices, in accordance with OFS guidelines, the filing with the exchanges said. However, the retail investors will have the option to bid at or above the cut-off price and for whom the final allotment price may be below the floor price due to retail discount.
The broker for the offer is Goldman Sachs (India) Securities Private Limited. IOB shares have lagged the market, falling 34% over the past year. The stock has underperformed the sector benchmark Nifty PSU bank, whose returns over the last twelve months are 16%. Meanwhile, the broader Nifty index is up 5%.
The stock is currently trading below the 50-day and 200-day simple moving averages (SMAs) of Rs 39.1 and Rs 39 as per Trendlyne data. It has also traded with very high volatility, with its one-year beta hovering around 1.3.
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