The Government of India has announced 8% stake sale in Central Bank of India via an offer for sale (OFS).
Goldman Sachs (India) Securities Private Limited has been appointed as the broker for the seller in the transaction.
OFS stands for Offer for Sale. It is a process in which the Government or a company sells its shares to investors through the stock exchange. In this case, the Government of India has announced an OFS to sell an 8% stake in Central Bank of India.
Shares of Central Bank of India declined as much as 6.5% after this announcement was made by the Government.
The OFS opened for non-retail investors today, with the issue slated to open for retail investors and employees on 25 May 2026. The floor price for the issue has been fixed at ₹31 per equity share, according to the official notice issued by the Department of Investment and Public Asset Management (DIPAM). The floor price is at an over 8.5% discount to the bank’s closing price of ₹33.94 on Thursday.
The government may additionally exercise an oversubscription option to sell more shares depending on investor demand.”
Government has offered to disinvest 4% equity in the Central Bank of India with an additional 4% as green shoe option,” DIPAM Secretary Arunish Chawla said in a post on X.
Under the base offer, the government proposed to sell 36,20,56,051 equity shares, representing 4% of the total issued and paid-up equity share capital of the bank.
In addition, the Centre retained the option to sell an equal number of shares under the oversubscription option. The OFS, if the green shoe option is exercised, is likely to be worth around ₹2,455 crore, based on the closing price of the bank’s stock on Thursday.
Currently, the government holds 89.27% stake in the bank.
Important Points about OFS
➡️ According to the offer document, at least 10% of the offer shares will be reserved for retail investors, while 75,00,000 equity shares have been earmarked for eligible employees of the bank.
➡️ Retail investors will also be eligible to bid at the cut-off price under the OFS mechanism.
➡️ Eligible employees can apply for shares worth up to ₹5 lakh and may additionally bid in the retail category, subject to applicable limits.
➡️ The OFS for non-retail investors will take place on May 22 between 9:15 am and 3:30 pm. Non-retail investors will also have the option to carry forward their unallotted bids to T+1 day. Retail investors and employees will be able to place bids on May 25 during the same trading hours.
➡️ The government further stated that a minimum of 25% of the OFS shares reserved for non-retail investors would be allocated to mutual funds and insurance companies, subject to valid bids being received at or above the floor price.
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