The Centre will divest 3 percent shares of Indian Overseas Bank. Shares of this state-owned bank are being released in the market through an offer-for-sale. The process of releasing shares in the stock market began on Wednesday, December 17. As a result, the Centre's ownership in this state-owned bank will decrease.
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On December 17, the Centre will release 2 percent stake or 38 crore 51 lakh 31 thousand 796 shares of Indian Overseas Bank in the market through the non-retail window. The remaining 1 percent or 19 crore 25 lakh 65 thousand 898 shares will be released for retail investors. Retail investors can apply for these shares from December 18.
At the end of Tuesday's trading, the price per share of Indian Overseas Bank on the National Stock Exchange was ₹36.55. However, the floor price for this offer-for-sale has been set at ₹34. Applications can be made to buy these shares through the National Stock Exchange and Bombay Stock Exchange during regular trading sessions. Through this share divestment, ₹1,964 crore will be raised from the market.
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Indian Overseas Bank's share performance over the past year has not been noteworthy at all. Over the past year, this company's share price has declined by more than 34 percent. Even in the past month, the price has dropped by nearly 10 percent. Currently, this stock is trading below the 50-day and 200-day Simple Moving Average (SMA), which reflects the stock's downward trend. On Wednesday too, the stock price fell by nearly 4 percent to ₹35.11.
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