Indian Overseas Bank Government stake sale and stock reaction

The Centre is selling a base 2% stake (about 38.51 crore shares) in IOB on December 17 for non‑retail investors, with an option to sell another 1% (19.25 crore shares) via a green‑shoe option for retail on December 18, potentially garnering around ₹2,000 crore. Ahead of and during the OFS, IOB’s share price has fallen about 4–5%, touching intraday lows near ₹34.7 and extending a roughly 13–14% one‑month decline and about 32–37% YTD underperformance versus the Sensex.