Govt exercises greenshoe option to sell 4% more stake in Central Bank OFS
This story was originally published at 20:09 IST on 22 May 2026
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--Govt to exercise oversubscription option, sell 4% more via Central Bank OFS
NEW DELHI – The government has decided to exercise the greenshoe option to sell an additional 4% stake in Central Bank of India, the state-owned bank said in an exchange filing on Friday. The government offered to offload 4% stake in the bank through the offer for sale, with an option to sell an additional 4%. The issue opened for non-retail investors on Friday and will open for retail investors on Monday.
"Offer for sale in Central Bank of India received enthusiastic response from investors and was oversubscribed 2.35 times on the first day. Government has decided to exercise the entire green shoe option, Divestment Secretary Arunish Chawla said in a post on the social media platform X.
The government currently holds 89.27% share in Central Bank of India. The OFS will help the bank move towards meeting the Securities and Exchange Board of India's minimum public shareholding norm. According to SEBI's norms, listed companies must have a minimum public shareholding of 25%.
The government has fixed the floor price for the offer for sale at INR 31 per share. At the floor price, the government will earn over INR 24.56 billion by selling 8% stake.
In the March quarter, Central Bank of India's net profit fell 30% on year to INR 7.24 billion. Friday, Central Bank of India's shares closed 7.8% lower at INR 31.27 on the National Stock Exchange. End
Reported by Sagar Sen
Edited by Saji George Titus
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