Government to sell 8% stake in Central Bank of India:To raise ₹2,455 crore through Offer for Sale; floor price set at ₹31 per share

The government has decided to sell its 8% stake in Central Bank of India through an Offer for Sale (OFS). For this OFS, the government has set a floor price of ₹31 per share, which is at a discount of more than 8.5% from the bank’s Thursday closing price of ₹33.94. Following this decision, today i.e. Friday, May 22, Central Bank shares have fallen by more than 5% in the market. It is trading around ₹32. In one month, it has fallen by more than 13%. OFS will open on different days for non-retail and retail investors According to the notice issued by the Department of Investment and Public Asset Management (DIPAM), this OFS will open for non-retail investors on May 22, 2026. Meanwhile, retail investors and bank employees will be able to place their bids for this issue on May 25, 2026. On both days, bids can be placed during trading hours from 9:15 AM to 3:30 PM. Government holds 89.27% stake in Central Bank Currently, the government’s stake in Central Bank of India is 89.27%. This stake sale by the government is part of the strategy for disinvestment and compliance with public shareholding regulations. 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, for this it is necessary that their bids meet the floor price or above. Non-retail investors can also carry forward their unallotted bids to the next day (T+1 day). 10% Quota Reserved for Retail Investors At least 10% of the shares from this offer for sale have been reserved for retail investors. Retail investors will be eligible to bid at the cut-off price under this mechanism. Additionally, 75,00,000 shares have been separately allocated for eligible employees of the bank. Eligible employees can apply for shares worth up to ₹5 lakh. Along with this, they can also separately bid in the retail category under prescribed rules and limits. The eligibility of employees will be determined based on PAN card details shared by the bank with stock exchanges. Trading Will Continue in Normal Market Segment The government has clarified that during this stake sale process, the bank’s shares will continue to trade on the stock exchange just like in the normal market segment. However, in certain special circumstances such as insufficient demand or other market-related reasons, this offer can also be withdrawn or cancelled. For this entire transaction, Goldman Sachs (India) Securities Private Limited has been appointed as the broker for the seller (government). This entire OFS is being conducted under SEBI regulations and stock exchange guidelines. What is Offer For Sale (OFS) and Green Shoe Option? When promoters or the government of a listed company sell their stake directly to investors through the market, it is called OFS. Green Shoe Option is an option under which, if there is higher demand in the market, the promoters reserve the right to sell more shares than the fixed stake (in this case, an additional 4%).