Central Bank of India OFS: Central Bank of India share price tanked 6% today, 22 May, after the Government of India announced 8% stake sale in the PSU lender via an offer for sale (OFS).
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 PSU lender’s Thursday closing price of ₹33.94.
The government may additionally exercise an oversubscription option to sell more shares depending on investor demand.
“Government offers 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.
Central Bank of India shares hit the day’s low of ₹31.85 on the BSE, down 6.07% against its last close.
Central Bank of India OFS: Key things to know
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.
The government said employee eligibility would be determined based on PAN details shared by the bank with stock exchanges one trading day before the OFS opening date. 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 Offer shall take place over two trading days on a separate window of the Stock Exchanges on May 22, 2026 (“T” day) and May 25, 2026 (T+1 day), commencing from 9:15 a.m. and shall close on the same date at 3:30 p.m. (Indian Standard Time) on both days, as per details given below,” Central Bank of India said.
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.
Goldman Sachs (India) Securities Private Limited has been appointed as the broker for the seller in the transaction. The OFS is being conducted in accordance with SEBI’s OFS guidelines and stock exchange regulations.
The government clarified that the shares offered through the OFS would continue to trade in the normal market segment during the issue period. The notice also specified that the offer could be withdrawn or cancelled under certain conditions, including insufficient demand or market-related factors.
The stake sale forms part of the government’s broader divestment and public shareholding compliance strategy for public sector enterprises and banks.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
