Govt Launches Central Bank Of India OFS, Plans To Sell Up To 8% Stake At ₹31 Per Share

Mumbai: The government on Friday opened the offer for sale (OFS) for shares of Central Bank of India as part of its disinvestment plan. Through the OFS, the government plans to sell up to 8 per cent stake in the public sector lender.

The issue opened for non-retail investors on Friday, while retail investors and eligible employees will be able to place bids on May 25, 2026.

The floor price for the OFS has been fixed at Rs 31 per equity share. This is more than 8.5 per cent lower than the bank’s closing price on Thursday.

Government May Raise Around Rs 2,455 Crore

According to the offer details, the government will initially sell 4 per cent equity stake in the bank. It also has the option to sell an additional 4 per cent stake through the green shoe option if investor demand remains strong.

DIPAM Secretary Arunish Chawla said in a social media post that the government is offering 4 per cent stake with another 4 per cent as an oversubscription option.

The government has proposed to sell over 36.20 crore equity shares in the first phase. If the additional stake sale option is fully exercised, the total OFS size could reach nearly Rs 2,455 crore based on Thursday’s market closing price.

Quota Reserved For Mutual Funds, Retail Investors

The government has reserved at least 25 per cent of the OFS shares meant for non-retail investors for mutual funds and insurance companies, provided they place valid bids above the floor price.

For retail investors, at least 10 per cent of the total shares on offer have been reserved. In addition, 75 lakh equity shares have been set aside for eligible employees.

Retail investors can bid at the cut-off price, while employees can apply for shares worth up to Rs 5 lakh. Eligible employees can also participate in the retail category within the prescribed limits.

Bidding Timings And Rules

The OFS will remain open over two trading sessions. Bidding for both categories will take place between 9:15 am and 3:30 pm.

Non-retail investors will also have the option to carry forward their unallotted bids to the next trading day. The government said employee eligibility will be decided based on PAN details shared by the bank with stock exchanges before the OFS opening.