Central Bank India OFS: Modi government will sell 8% stake in Central Bank of India, will raise Rs 2,455 crore through offer for sale …

Business Desk – Central Bank India OFS: The government has decided to sell its 8% stake in Central Bank of India through ‘Offer for Sale’ (OFS). For this OFS, the government has fixed the ‘floor price’ (minimum price) of Rs 31 per share. This price is more than 8.5% less than Rs 33.94. After this decision, Central Bank shares have fallen by more than 5% in the market. Currently this share is trading at a price of around Rs 32. In the last one month, it has fallen by more than 13%.

OFS will open on different days for non-retail and retail investors

According to a notice issued by the ‘Department of Investment and Public Asset Management’ (DIPAM), this OFS will open for non-retail investors on May 22, 2026. At the same time, retail investors and bank employees will be able to place their bids for this issue on May 25, 2026. On both these days, bids can be placed during trading time i.e. from 9:15 am to 3:30 pm.

Option to sell additional 4% depending on demand also available

Under the ‘base offer’, the government will sell 4% stake. Specifically, 362,056,051 equity shares. If demand from investors remains strong, the government will also have the option to sell the same number of additional shares.

Government holds 89.27% ​​stake in Central Bank

Currently, the government holds 89.27% ​​stake in the Central Bank of India. This sale of shares is a part of the government’s ‘disinvestment’ strategy and in compliance with ‘public shareholding rules’. According to the offer document, at least 25% of the shares reserved for non-retail investors will be allotted to ‘mutual funds’ and ‘insurance companies’.

However, this allotment will depend on whether their bids are received at or above the ‘floor price’. Non-retail investors who have not received shares in exchange for their bids can carry forward their bids to the next day (T+1 day).

10% quota reserved for retail investors

At least 10% of the shares offered in this ‘Offer for Sale’ (OFS) have been reserved for retail investors. Under this arrangement, retail investors are eligible to bid at the ‘cut-off price’. Additionally, 7,500,000 shares have been set aside for eligible employees of the bank.

Eligible employees can apply for shares worth up to ₹5 lakh. Also, subject to the prescribed rules and limitations, they can also bid separately under the Retail category. The eligibility of employees will be determined on the basis of PAN card details shared by the bank with the stock exchanges.

Trading will continue in the normal market segment

The government has clarified that during the entire period of this stake sale process, trading of the bank’s shares will continue in the normal market segment on the stock exchanges. However, in certain circumstances such as insufficient demand or other market related factors this offer may be withdrawn or cancelled.

Goldman Sachs (India) Securities Private Limited has been appointed as the broker of the seller (government) for this entire deal. This entire OFS is being conducted as per SEBI regulations and guidelines issued by the stock exchanges.

What are ‘Offer for Sale’ (OFS) and ‘Green Shoe Option’?

When the promoters of a listed company or the government sell their stake directly to investors through the market mechanism, the process is called ‘Offer for Sale’ (OFS). In contrast, the ‘green shoe option’ is a provision under which, if market demand exceeds the initial offering, the promoters reserve the right to sell shares in excess of the originally scheduled stake (in this specific case, an additional 4%).