Shares of state-run Vijaya Bank fell as much as 3.2 per cent to Rs 68.60, their biggest intraday percentage drop since August 18.
The shares plunged as the lender had said on Monday it launched a share sale to institutional investors with a floor price set at Rs 66.36 per share.
The sale involves base deal of Rs 450 crore with an option for an increase of Rs 250 crore, IFR reported.
Up to Monday's close, the stock had risen 49.3 per cent this year.