Govt to offload 4% stake in Central Bank of India via OFS, issue opens Fri
This story was originally published at 07:19 IST on 22 May 2026
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NEW DELHI – The government is set to offload 4% stake in Central Bank of India through an offer for sale, Divestment Secretary Arunish Chawla said late Thursday. The OFS opens Friday for non-retail investors, and retail investors can bid on Monday, Chawla said.
The issue will have a greenshoe option for an additional 4%, Chawla said in a post on social media platform X. The floor price for the OFS is INR 31 per share, Central Bank of India informed exchanges. The floor price is slightly lower than the stock's closing price of INR 33.92 on the National Stock Exchange on Thursday, up 0.2%.
The government currently holds 89.27% share in Central Bank of India. The OFS will help the government inch towards meeting the Securities and Exchange Board of India's minimum public shareholding norm. According to SEBI, all listed companies must maintain public shareholding of 25%. If the government exercises the greenshoe option, its total stake in the state-owned bank will fall to 81.27%.
The OFS will also help the government shore up its capital receipts. At the market price, the government will earn over INR 24.56 billion by selling 8% stake. If it chooses not to exercise the greenshoe option, the government will raise nearly INR 12.30 billion.
In the March quarter, Central Bank of India's net profit fell for the first time in 20 quarters, driven by the one-time impact of changes in deferred tax calculations, which pushed up income tax outgo. The bank's net profit fell 30% to INR 7.24 billion. End
Reported by Priyasmita Dutta
Edited by Avishek Dutta
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